The ratings of the main GPU manufacturers have bot lowered by leading Wall Street analyst on the news that Bitmain is going to release its fresh Ethereum ASICs.
A major research company Susquehanna has lowered price targets for Nvidia stock and diminished the rating of AMD shares to negative from neutral. The reason for that is the enlargening competition from Chinese cryptocurrency mining hardware producer Bitmain, which has reportedly embarked producing fresh ASIC miners for Ethereum and other similar digital currencies.
According to Susquehanna analyst Christopher Rolland, this is likely to reduce request for GPUs by cryptocurrency mining firms, spil ASICs are more efficient if compared to chips from Nvidia and AMD. Approximately 10% of Nvidia and 20% of AMD sales profit now comes from mining companies.
The fresh ASIC miner will be compatible with Ethash, the Proof-of-Work hashing algorithm used by virtual currencies and will have Trio motherboards, with each motherboard containing 6 ASICs and 32GB of DDR3. The shipment of very first chips, Rolland noted, is expected straks this year.
“During our travels through Asia last week, wij confirmed that Bitmain has already developed an ASIC [application-specific integrated circuit] for mining Ethereum, and is readying the supply chain for shipments ter 2Q18,” Rolland wrote te a note to clients Monday, according to CNBC.
“While Bitmain is likely to be the largest ASIC vendor (presently 70-80% of Bitcoin mining ASICs) and the very first to market with this product, wij have learned of at least three other companies working on Ethereum ASICs, all at various stages of development,” he added.
The price forecast for AMD stock wasgoed diminished from $13 to $7.50, what is a 29% downgrade from market close on Friday. Meantime, the forecast for Nvidia shares wasgoed lowered to $200 from $215 at Friday’s close, albeit its neutral rating wasgoed not switched. “Nvidia has a stronger and more durable gaming franchise which would help it work through this potential Ethereum-related unwind,” Rolland noted. AMD shares declined by 1.79% on Monday, while Nvidia stock enlargened by Four.94%.
Earlier this month, Bitmain has announced the release of its fresh chip, the Antminer X3, designed for mining the Monero cryptocurrency. However, the stir faced criticism from the Monero community spil it turned out that the device might not work by the time the company starts shipping them ter May, 2018. Monero project lead, Riccardo Spagni, also warned its users that Bitmain’s chips will not be suitable for mining the cryptocurrency.
The problem is that Monero developers have determined to update their software te April, fully switching the system which will make fresh ASICs futile for mining. Besides, the team said the switches will be performed twice a year. The budge, according to developers, is expected to prevent the centralization of mining and discourage ASICs from mining the Monero cryptocurrency.
At the ogenblik, the sales pagina on Bitmain’s webpagina warns users about the risks of cryptocurrency mining. “These risks can be related to switches ter exchange rate of the cryptocurrency or to switches ter the algorithm that is used to mine the cryptocurrency. Please deliberate well before making a purchase because wij will not accept any requests for refund for orders of this batch,” the webpagina reads.