Nvidia Risks a Reckoning by Catering to Crypto Miners
The chip giant’s graphics cards are in hot demand as a tool for mining Ethereum, but gamers are the better customers.
Crypto miners are gobbling up Nvidia’s graphics cards now, but their demand may be fleeting if coin prices dip.
Photographer: Akos Stiller/Bloomberg
Nvidia Corp. is on a winning streak. The red-hot maker of graphics chips used for video games, artificial intelligence and cloud computing surpassed Intel Corp. last year to become the most valuable U.S. chipmaker. And the good news keeps coming.
This week, Nvidia’s stock price reached a new record after it announced that all of its product lines were exceeding expectations for the current quarter. Investors also applauded when Nvidia said on Monday it would enter the central processing unit business, a major new market for the company.