5 Companies that Benefit From Crypto Mining

1. NVIDIA Corporation (NASDAQ: NVDA)

Number of Hedge Fund Holders: 80   

NVIDIA Corporation (NASDAQ: NVDA) is a computer systems design and services company. The processing units made and sold by the firm for computers and smartphones, mainly for gaming, are also used by crypto miners as they offer great performance in blockchain technology. The firm is placed first on our list of 10 companies that benefit from crypto mining. The stock has offered investors returns exceeding 99% in the past twelve months.

On June 22, investment advisory Raymond James upgraded NVIDIA Corporation (NASDAQ: NVDA) stock to Strong Buy from Buy and hiked the price target to $900 from $750 on the back of the expected recovery of data centre spending that will benefit the visual computing firm.  

At the end of the first quarter of 2021, 80 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in NVIDIA Corporation (NASDAQ: NVDA), down from 88 the preceding quarter worth $8.6 billion.

In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ: NVDA) was one of them. Here is what the fund said:

“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”

You can also take a peek at Billionaire Stan Druckenmiller’s Top 10 Stock Picks and Billionaire Julian Robertson On Interest Rates and His Top Stock Picks For 2021.

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