Look For 'Crypto' Effect In Nvidia's Earnings

Investing.com - Investors will be paying close attention to the role of cryptocurrencies in Nvidia's (NVDA) earnings this week after their surprising contribution to those of rival chipmaker Advanced Micro Devices (NASDAQ:AMD). AMD's fourth-quarter earnings showed that a third of the growth in its computing and gaming unit was from cryptocurrencies, more than even its CEO expected Cryptocurrencies are no longer a flash in the pan for the two chipmakers and Wall Street is paying closer attention to their role in the bottom line. Morgan Stanley (NYSE:MS), for one, recently raised its sales estimates for both companies based on the strength of the cryptocurrency market. Credit Suisse (SIX:CSGN) said the crypto business should not be discounted, as their graphics chips have proven perfect for the mining of digital currencies such as Bitcoin and Ethereum. But all is not roses. Goldman Sachs (NYSE:GS) removed Nvidia from its "conviction" list of stocks, saying the volatility of the cryptocurrency business may cause volatility of its own in the company's earnings. Recent Nvidia earnings support that concern. Revenue from crypto-related products from fell by more than half from the second quarter to the third quarter.Still, analysts expect more growth to come, especially as the blockchain ledger technology at the heart of cryptocurrencies is adapted for a variety of other commercial purposes.