5 Crypto Stocks for 2022

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Funds: 83

NVIDIA Corporation (NASDAQ:NVDA) is not directly involved in the cryptocurrency value chain. However, the company is involved in the manufacturing of Graphics Processing Units (GPUs), an integral element in the mining of cryptocurrencies. This makes the company a great play in the cryptocurrency universe.

Blockchain technology and the science of cryptography need a massive amount of computational power, and GPUs are used to provide the required power. GPUs have been known for accommodating the graphics of premium video games; however, they are now employed at data centers and crypto mining locations. There have been instances when the stock price of the Santa Clara, California-based company has experienced a sudden surge following an increase in the demand for GPUs for cryptocurrency mining.

In March 2021, to capitalize on the boom of cryptocurrency mining, NVIDIA Corporation (NASDAQ:NVDA) launched the CMP series, a line of GPUs dedicated to cryptocurrency mining with a hash rate ranging from 26 MH/s to 86 MH/s. This move was made to ensure that there is not a shortage of gaming GPUs as professional miners bought these GPUs to fulfill their need for mining cryptocurrency. Since its launch, the CMP chip has generated total revenue of $526 million for NVIDIA Corporation (NASDAQ:NVDA). This is equivalent to 3% of the $19.27 billion in total revenue generated by NVIDIA Corporation (NASDAQ:NVDA) during the same period.

NVIDIA Corporation (NASDAQ:NVDA) was mentioned in the Q3 2021 investor letter of Harding Loevner. Here’s what the investment management firm said:

“The proliferation of devices using chips, whether EVs, “things” in lol, or embedded systems more generally, results in the generation of oceans of data potentially needing to be stored, processed, and analyzed. NVIDIA, the leading chip designer wellknown for its graphic processing units and its complementary CUDA software ecosystem, is at the forefront of the effort to provide the analytical platform needed to unlock the full potential of such specialist processors.”