Does Newegg's Stock Price Match Its Prospects?

Newegg Commerce (NASDAQ: NEGG) outperformed most other consumer goods stocks this year. Shares have gained almost 500% year over year (mainly within the last two months) after computer enthusiasts found units of the coveted NVIDIA (NASDAQ: NVDA) RTX 30 series GPUs for sale on the company's platform. They are currently the world's fastest graphics memory cards available.

NVIDIA launched the new GPUs last September with a price tag of around $1,500 each, and supply is low. Gamers need the graphics card to play or stream video games for fans at ultra-high settings and over 200 frame rates per second. Crypto-miners also need the GPU to mine digital currencies. For example, the RTX 3080 can mine Ethereum at a rate of 121 mega hashes per second, which translates to about $6 in profit per day after electricity costs (or breakeven in less than a year).

Amidst a global semiconductor shortage, many computer enthusiasts turned their attention to Newegg in hopes of securing a RTX GPU. But is all this enough to justify the company's $10.5 billion market cap?

Source Fool.com