Shares rose by 11%, recovering from a deep recession.
From the beginning of 2016 to September 2018 Nvidia has experienced a stunning rise: market capitalization jumped from 14 to 175 billion due to strong demand for processors used for cryptocurrency mining and processing of artificial intelligence algorithms.
However, in the fourth quarter of 2018 quotes collapsed by 54%, which was the worst result in the S&P 500 index. Investors get rid of securities Nvidia due to the fall cryptoeconomy. Miners don’t need the graphics chips, because the mining of digital currencies became unprofitable.
Analyst Stacy Gilbert (Gilbert Stacey) of Susquehanna believes that a further rise in the value of securities Nvidia can contribute two factors – the purchase of an Israeli developer of Mellanox chips and that investors were more likely to buy stocks of technology companies with high market capitalization.
According to experts, the acquisition of Mellanox can “fill in the share in the revenue”, which was formed in the fall of the cryptocurrency market.
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