Is Buying Nvidia Stock a Sneaky Crypto Play?

The newest trillion-dollar tech stock offers indirect exposure to the crypto market.

Investors are buzzing about Nvidia (NVDA -1.11%) after it reached a $1 trillion market capitalization at the end of May. Now trading at just under $400, Nvidia joins a rarefied elite of just four other U.S.-based companies -- Apple, Alphabet, Microsoft, and Amazon -- with trillion-dollar market valuations. Although Nvidia is obviously a strong play on the future growth of the tech industry, could it also be a sneaky crypto play?

That might not be as insane as it sounds. Nvidia already provides the specialized graphics processing units (GPUs) required for cryptocurrency mining rigs. And Nvidia's recent announcement of a new AI supercomputing platform has already led to a flurry of AI-themed cryptos surging higher over the past week. Here's a closer look at why Nvidia might be a way to get exposure to the crypto industry, without taking on excessive risk.

The old crypto investment thesis for Nvidia

Until the start of this year, the standard investment thesis for Nvidia as part of a crypto portfolio was based on cryptocurrency mining. To mine proof-of-work cryptos such as Bitcoin, miners need very powerful computing systems called mining rigs. And Nvidia has provided some of the most powerful GPUs used in these mining rigs. In any review of the best GPUs for mining, Nvidia typically ranks at the top of the list.

As a result of this link to cryptocurrency mining, some analysts and fund managers already consider Nvidia to be an invaluable part of any broad-based stock portfolio designed to get exposure to the crypto industry. For example, take the Schwab Crypto Thematic ETF. Currently, Nvidia is its sixth-largest holding, behind PayPal and ahead of Block, representing 4.1% of the fund's holdings.

However, crypto giant Ethereum transitioned from a proof-of-work blockchain to a proof-of-stake blockchain back in September, so the investment narrative around Nvidia and crypto mining has been fading. That's because Ethereum mining rigs are now obsolete. You can no longer use Nvidia GPU mining rigs to mine Ethereum, so they need to be repurposed for other cryptos. Given that Ethereum is the world's second-largest cryptocurrency by market cap, that's actually a big deal. It definitely takes some of the allure away from the crypto mining idea.

The new crypto investment thesis for Nvidia

That's why Nvidia's recent announcements related to AI are so exciting for crypto investors. It means that there's a new reason to buy Nvidia, and that's the rise of new AI-powered cryptos. With the popular success of ChatGPT and other generative AI projects, it's becoming more and more popular to put AI projects on the blockchain, and that's leading to a dramatic surge in AI cryptos. For example, as soon as Nvidia reported blowout sales estimates related to AI, SingularityNET, an AI crytpo, jumped almost 20%. Smaller AI cryptos were up 5% across the board.

Bigger gains related to AI and crypto could be on the way. At a big computer industry trade show in Taiwan, Nvidia announced the launch of a new AI supercomputer platform (DGX GH200) that is specifically being billed as a way for large tech companies to build ChatGPT competitors. Moreover, Nvidia said at the trade show that it was going to focus on ways to make video games more lifelike with the help of AI. That could spur growth in the blockchain gaming and metaverse sectors of the crypto industry.

How much Nvidia is too much Nvidia?

As a result, Nvidia could be a relatively safe way for investors to gain access to the infamously volatile crypto market. Instead of trying to pick winners among a growing number of AI-themed cryptos (almost all of them with market caps of less than $50 million), you could simply diversify your exposure via Nvidia. And, instead of trying to find the best crypto mining stocks or trying to pick the best proof-of-work cryptos (which require mining), you could simply invest in Nvidia.

Obviously, you don't want to overdo things, no matter how excited you might be about Nvidia, AI, or crypto. As noted above, the Schwab Crypto Thematic ETF currently has less than 5% of its portfolio dedicated to Nvidia. That might be a good benchmark figure when thinking about how to diversify your own portfolio.

With all of the good news coming out of Nvidia these days, I'm bullish both on the company and the long-term fortunes of the AI industry. The extra bonus for investors is that Nvidia also gives you sneaky access to crypto without having to dip your toes into the crypto market.

Should you invest $1,000 in Nvidia right now?

Before you consider Nvidia, you'll want to hear this.

The Motley Fool Stock Advisor analyst team just revealed what they believe are the 10 best stocks for investors to buy right now... and Nvidia wasn't one of them.

Stock Advisor is the online investing service that has beaten the stock market by 3x since 2002*. And right now, they think there are 10 stocks that are better buys.

Bài đăng phổ biến từ blog này

1967 Pontiac GTO

The Pontiac GTO is an American muscle car that was built by Pontiac in generations from 1964 to 1974 model years, and by GM's subsidiary Holden in Australia from 2004 to 2006. 1967 Pontiac GTO 1969 Pontiac GTO the "Judge" The first three generations of the Pontiac GTO was a muscle car of the 1960s and 1970s era.The Pontiac GTO was known as the judge of all muscle cars. the Pontiac GTO is considered by some to have started the trend with all four domestic automakers offering a variety of competing models. 1970 Pontiac GTO "Judge" For the 1964 and 1965 model years, the GTO was an optional package on the intermediate-sized Pontiac Tempest. The GTO became its own model from 1966 to 1971. It became an option package again for the 1972 and 1973 intermediate Le Mans. For 1974, the GTO option package was offered on the compact-sized Ventura. 1971 Pontiac GTO The GTO was selected Motor Trend Car of the Year in 1968.It was the only muscle car in the world which containe...

Cách đơn giản loại bỏ rỉ sét bằng điện phân

Điện phân là một cách đơn giản và hiệu quả để loại bỏ rỉ sét và phục hồi kim loại mà không làm hỏng bề mặt như chà nhám hoặc đánh bằng chổi cước thép. Điện phân hoạt động tốt nhất trên sắt và thép. Không nên điện phân trên thép không gỉ, vì nó có thể giải phóng khí crom độc hại. Điện phân hoạt động như thế nào Điện phân xảy ra khi một dòng điện trực tiếp, điện áp thấp (DC) được truyền qua hai mảnh kim loại lơ lửng trong dung dịch hóa học (chất điện phân). Dòng điện gây ra sự truyền ion giữa hai mảnh kim loại, phá vỡ rỉ sét trên kim loại nối với điện cực âm (cực âm) trong khi ăn mòn kim loại nối với điện cực dương (cực dương). Vì điện phân không ảnh hưởng đến kim loại bên dưới, nó hoàn hảo để làm sạch các công cụ, khôi phục đồ cổ và nới lỏng các bu lông bị rỉ sét. Vật liệu cần thiết cho điện phân Điện phân nên được thực hiện trong một khu vực có nhiều thông gió, vì nó giải phóng một lượng nhỏ khí hydro và oxy, có thể dễ cháy nếu chúng tích tụ. Để loại bỏ rỉ sét bằng điện phân, bạn sẽ cầ...

1968 Dodge Charger

1968 Dodge Charger - Awesome American Muscle Car 1968 Dodge Charger R/T The Dodge Charger is a brand of automobiles marketed by Dodge. The first Charger was a show car in 1964. There have been several different production Chargers, built on three different platforms and sizes. In the U.S., the Charger nameplate has been used on subcompact hatchbacks, full-sized sedans, and personal luxury coupes. The current version is a four-door sedan.

Đồ chiên nướng cháy có thể làm tăng nguy cơ đau tim và đột quỵ lên 60%

Các nhà khoa học đang cảnh báo mọi người về một hóa chất được tạo ra khi nấu một số loại thực phẩm phổ biến của gia đình. Họ nói rằng nó có thể làm tăng nguy cơ đau tim và đột quỵ lên 60%. Được gọi là Acrylamide, nó được sản xuất khi các loại thực phẩm như khoai tây, bánh mì và cà phê được đun nóng. Nó phổ biến trong carbohydrate bị cháy và gây ra bởi phản ứng giữa nhiệt và đường tự nhiên dẫn đến chuyển sang màu nâu. Tác dụng của Acrylamide Acrylamide được tìm thấy trong các bữa ăn được sản xuất thông qua nấu ăn công nghiệp, bao gồm thực phẩm siêu chế biến. Trong nhiều năm, đã có những lo ngại rằng acrylamide có thể tạo ra các phản ứng trong cơ thể có khả năng dẫn đến ung thư. Tuy nhiên, một nhóm các nhà nghiên cứu Tây Ban Nha đã phát hiện ra một nguy cơ tiềm ẩn khác từ việc uống acrylamide: bệnh tim mạch. Nghiên cứu về acrylamide Các nhà nghiên cứu đã công bố những gì họ tìm thấy trên tạp chí Nutrients. Đối với nghiên cứu, họ đã kiểm tra hàng chục nghiên cứu kéo dài từ năm 2007 ...

The reason why Microsoft spent record money to buy Activision Blizzard

The acquisition of Activision Blizzard for $ 68.7 billion is considered to help Microsoft move deeper into the metaverse. Microsoft's acquisition of Activision Blizzard is today's biggest deal in the gaming segment. Photo: Reuters This is the largest merger in the technology sector, surpassing the event Dell bought EMC for $ 67 billion in 2016. The amount Microsoft spent also far exceeded the $ 26 billion it spent to buy the social network LinkedIn. According to Bloomberg, there are 5 reasons for the company to do this. Increase position in the game field If the transaction between Microsoft and Activision Blizzard is approved by regulators, the US software corporation will become the third-largest game company globally after China's Tencent and Japan's Sony. In fact, both companies also admitted that they want to "go home" to increase their position in the game field. "Activision cannot compete on its own in the new world of games," said Bobby Kotic...

Brain chip technology can transform the smartphone industry

Neuralink was founded by billionaire Elon Musk, a company specializing in neural technology based in San Francisco. The company is developing a brain-computer interface to treat neurological ailments like Alzheimer's, dementia and spinal cord injuries. Essentially, this is a network of tiny electrodes linked to the brain, allowing humans to communicate wirelessly with everything and everyone around them. Those inexplicable beliefs, fears, hopes, anxiety, and abstractions will become clear thanks to Neuralink's technology. In addition, it can allow humans to communicate with animals. Last year, the company started testing the Neuralink chip in Gertrude pigs. This may be considered unethical by many, but when it is scientifically understood and what it really means, the chip transplantation will be accepted as any groundbreaking discovery human has ever witnessed. . Of course, that doesn't deny the fact that putting a chip in an animal brain - and in the future, the human bra...

PUBLIC CLOUD vs PRIVATE CLOUD

The services cloud computing are distinguished primarily in Public Cloud, Private Cloud and a composite form, called Hybrid Cloud. What are the advantages and disadvantages related to each solution? What would be the most appropriate service for your company? We start to see more in detail what are the available cloud types. Public cloud The public cloud is provided by an external provider that, through the Internet, makes available IT resources necessary to support the business of a company. It is a cloud infrastructure is shared by multiple users, in which the provider is also responsible for configuring and managing the service. Advantages: Lower costs One of the main benefits of the public cloud is very competitive costs, due to the elimination of the cost of purchasing and maintaining the IT infrastructure as well as the specialized personnel assigned to service management. Potentially unlimited scalability Resources are distributed "on demand", facilitating the cha...

WikiHowBlog

Tìm kiếm Blog này