The analysts found that a recent rise in Bitcoin prices has done little to affect the price dynamics for Nvidia GPUs in the secondary market. GPUs are selling for between 1.5x and 2.5x MSRP in secondary markets, the analysts found-but that is far below the 2x to 3.75x MSRP range the units were selling at when Bitcoin prices were at similar highs in May. In the past, when Bitcoin prices spiked, the value of GPUs sold on the likes of eBay similarly rose, indicating that the chips were headed for cryptomining and commanded lofty premiums for those in the gaming market. They found that the relationship between Bitcoin prices and the premiums for GPUs in the secondary market was decoupling-particularly for Nvidia’s chips. Kumar and Farrell’s research scraped eBay (EBAY) for data on the selling price of GPUs in the secondary market as a premium to the manufacturer’s suggested retail price (MSRP). Higher Bitcoin prices increase the incentives for cryptocurrency mining. They can also be used to power Bitcoin mining devices, which are energy-intensive computers rewarded with cryptocurrency for solving complex mathematical problems. GPUs are computer chips with applications in gaming machines. In a note, Piper Sandler’s Harsh Kumar and Matthew Farrell outlined how more graphics processing units (GPUs) could flow to the critical gaming market, which has been disrupted in the past by GPUs being scooped up by cryptocurrency miners. The analysts cited a “more constructive” view on Nvidia’s gaming business as the reason for their more bullish outlook. The shares have climbed more than 73% in 2021. premarket, after closing at $227.26 Friday. Nvidia stock was around 1% higher in the U.S. The impact of Bitcoin mining on Nvidia‘s gaming business may be slowing, prompting investment bank Piper Sandler to turn more bullish on the stock.Īnalysts at the bank raised their target price for Nvidia (ticker: NVDA) from $225 to $260 Monday.
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