Demand for NVIDIA (NVDA) RTX 30XX Cards So High, Future Hash Rates Will Be Gated - Needham

Needham & Company analyst Rajvindra Gill reiterated a Buy rating and $800.00 price target on NVIDIA (NASDAQ: NVDA) after the company announced it is incorporating features into its GeForce RTX 3060 GPUs that reduce the Ethereum hash rate, while simultaneously releasing a new processor for cryptominers (known as the CMP). The reduced hash rate is a deliberate attempt to cut the processing power for coin mining in order to make the cards more available to gamers.

The analyst stated "Though only modestly material at this time (2-6% of sales), CMPs could become a more important part of the revenue stream, and we are closely watching this space for developments. Separately, NVIDIA recently announced a 4:1 stock split, which has often encouraged new investors into the name and driven outperformance vs. the S&P 500 for similar Big Tech names." The analyst went on to address the Crypto opportunity stating "We are estimating sales of $100-$300M (2-6% of sales) for CMPs. Given the continued global demand for crypto, especially for decentralized finance or "defi" protocols like Ethereum, we are monitoring the hash rate usage and market pricing. The eventual alleviation of capacity shortages coupled with pent-up demand for cryptomining processors could lead to this line item becoming more material to sales."

For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.

Shares of NVIDIA closed at $624.48 yesterday.

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