Why Nvidia Stock Popped on Friday
Nvidia (NASDAQ: NVDA) stock responded positively Friday, notching a 2.4% gain as of 3 p.m. ET after a note emerged from independent equity research firm New Street in the morning.
New Street's report began on a down note, warning of an impending "crypto winter" that could flood the PC market with excess Nvidia graphics chips and cannibalize sales of new chips -- hurting Nvidia's sales.
As the analyst explained, cryptocurrencies have taken a beating of late, with Ethereum tokens, for example, down 40% from the peak, reports TheFly.com. And as the cryptocurrency market deteriorates further, New Street believes that crypto miners will become discouraged about mining, that demand for GPUs will "die," and that former miners will instead sell off their chips to consumers who would rather use them for their original intended purpose: powering graphics for video games.
Source Fool.com