3 Reasons NVIDIA's Gaming Growth Is Legit
Cryptocurrency prices are soaring, and NVIDIA's (NASDAQ: NVDA) gaming segment is booming. We've seen this story before, and it didn't end well for crypto traders or NVIDIA investors.
The last time this scenario occurred was in 2018, when surging digital currencies boosted the demand for high-end graphics cards by crypto miners. When the bubble popped, NVIDIA's gaming segment suffered an oversupply of chips, causing sales of graphics cards, and the chip maker's stock price, to fall sharply.
NVIDIA is better prepared this time around. While it doesn't know exactly how much demand is coming from miners, analyst estimates suggest that mining demand comprised a small amount of NVIDIA's gaming revenue in the fiscal fourth quarter, which bodes well for near-term stability in the gaming segment.
Source Fool.com
