The sustainability of blockchain technology is remarkable, but its adaptability and mobility are even more impressive. This year, blockchain has become a major focus in the tech world, fueling a market surge that has captured the attention of investors. Companies like AMD and Nvidia are particularly well-positioned to benefit from this trend, as their GPU technologies play a crucial role in blockchain operations.
According to recent reports, AMD's quarterly revenue has been impressive, highlighting the growing demand for high-performance chips used in blockchain applications. As a digital ledger system, blockchain has evolved beyond just cryptocurrency, expanding into various industries where security and transparency are essential.
Blockchain is the foundational technology behind Bitcoin and Ethereum, and it relies heavily on powerful GPUs to solve complex mathematical problems that validate transactions. Miners use these GPUs to earn new digital currencies, which has significantly increased demand for graphics processing units.
AMD and Nvidia are set to release their earnings reports next week, and both companies are expected to see strong performance due to rising GPU prices. Analysts predict continued growth in their sales as more global companies invest in the blockchain space or Bitcoin-related ventures.
[Image: The blockchain market is welcoming. AMD and NVIDIA have benefited a lot.]
Investors are showing renewed excitement about the future of blockchain. On Wednesday, AMD shares rose by approximately 6%, while Nvidia saw a 3% increase in its stock price. In 2017, Bitcoin's popularity surged over 1,300%, drawing more users worldwide and driving up demand for GPUs.
Previously, AMD and Nvidia were cautious about the potential revenue from cryptocurrencies, but analysts now believe the blockchain market is opening up for long-term opportunities. Stifel analyst Kevin Cassidy stated, "We believe that the larger blockchain ecosystem represents a sustainable GPU market, and it will eventually evolve into specialized ASIC chips for blockchain applications."
"We think both AMD and Nvidia could benefit from this shift, at least through the licensing of intellectual property for ASICs," he added.
Although blockchain is most famously associated with Bitcoin, its applications are expanding across multiple industries. For example, De Beers is using blockchain to verify the authenticity of diamonds, showcasing its potential beyond finance.
Credit Suisse analyst John Pitzer noted, "While some may argue that the benefits of blockchain are overhyped, we believe it has greater long-term sustainability than many other technologies." He estimated that AMD sold around $320 million in chips to blockchain companies in 2017, though this was only a small portion of its total annual revenue, which exceeded $5 billion.
During a recent earnings call, AMD CEO Lisa Su mentioned that while the blockchain market is highly dynamic, the company’s growth momentum remained strong in December and is continuing into the first quarter of this year.
Nvidia, AMD’s main competitor, will release its fourth-quarter results on February 8. The company reported quarterly revenue exceeding $100 million in October, signaling continued strength in the GPU market.
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