In a competition of chip makers, how do giants NVIDIA Corporation and Advanced Micro Devices, Inc. fare when sized up against each other? Top analyst Mitch Steves at RBC Capital recently conducted a cryptocurrency "thought experiment," evaluating the computing power of the giants in terms of Bitcoin and Ethereum mining technology. The verdict? Nvidia's last year model GPU "GTX 1070" in fact beats Advanced Micro Devices' newer "Radeon 580" on a performance playing ground.
As such, the analyst reiterates an Outperform rating on shares of NVDA with a $150 price target, which represents a 1% downside from where the stock is currently trading.
When considering transitioning to conditions for creating a full-fledged Data Center, the analyst places extra emphasis on electrical costs in terms of Bitcoin, giving older Nvidia GPUs the upper hand over AMD in a 12-month period.
Recognizing higher demand for power efficiency, the analyst gives NVDA the leverage in the chip giant ring, noting that, "Choosing between Nvidia and AMD GPUs today is heavily dependent on price."
Submitted June 08, 2017 at 11:37AM by MartEden http://ift.tt/2s0h4vi
