As the Crypto currency grew in value, the market was flooded with dangerous and dubious cryptoprojects. Little-known companies added the word “block” to their names and “unfolded” the business in the direction of crypto-currency. As a result, thetheir shares soared in the twinkling of an eye. The primary placement of coins (ICO) lured investors with promises of new “progressive” crypto-currencies, but in fact many were banal swindles. Impressive investors bought and other crypto-currencies at highs and in just a few days lost significant amounts.
Until now, the market has not decided whether the digital currencies are a new asset class or a huge bubble. In any case, there is an excellent opportunity to participate in a crypto library with minimal risk.To do this, you need to buy shares of three companies – the manufacturer of TSMC chips, the developer of graphics accelerators NVIDIA and the leader of the IBM block-branch. Any interested investor, they will allow to participate in the crypto-currency revolution, without exposing themselves to excessive threats.
TSMC is the world’s largest independent chip maker. It produces microcircuits for most of the technological giants of the world, including Apple, Qualcomm, NVIDIA and AMD.
Smaller miners use powerful graphics accelerators from NVIDIA and AMD. Last year, mass demand from their side led to a shortage of top-end video cards, and both manufacturers increased the volume of TSMC orders, trying to fill the gaps in deliveries.
But that is not all. Major miners, especially those who specialize in bitcoin, use the equipment based on ASIC-processors instead of graphics cards. The largest manufacturer of ASIC equipment is Bitmain, and it is TSMC that supplies it with chips.
TSMC does not disclose the share of each customer in the proceeds. But during the press conference on the results of the third quarter, CEO Mark Liu said that the company received from cryptomayers 350-400 million dollars, which is equivalent to 4-5% of total revenue. Most analysts believe that the bulk of this revenue comes from Bitmain.
According to the results of the fourth quarter, the company does not disclose the share of miners in revenue, but CFO Laura Ho explained the sales growth by 10% “by the launch of new mobile products and continued demand from the miners.” Thus, TSMC allows us to play not only on the growing demand for chips, but also offers a conservative way to participate in the crypto currency boom.
In the third quarter of 2017, the revenue from NVIDIA related to crypto-currencies was $ 70 million, only 3% of the total revenue. Compared to the second quarter, it decreased by 53% (from 150 million).According to company estimates, the demand for GPUs, which are mainly used to produce alternative crypto currency, is beginning to stabilize. The general director, Jenxun Huang, during the press conference noted that the share of proceeds from the miners was “small, but not zero”.
Meanwhile, the company’s revenue from the sale of video games for the year increased by 25%, to $ 1.59 billion, and accounted for 59% of total revenue. Thus, even if demand from the side of miners falls, it will be easily compensated by sales of game graphics cards.
NVIDIA demonstrates an impressive growth in the segment of computing centers, where its high-performance Tesla graphics processors are used for machine learning purposes. In the segment of connected cars, its Tegra chips are responsible for entertainment, navigation and autonomous control systems in high-end models. That is why this year analysts forecast the growth of revenues and profits of the company by 37% and 64%, respectively.
IBM allows you to play on the development of the– the decentralized database underlying the bitcoin and other crypto-currencies. Last September, Juniper Research recognized the company as the leader in this market – more than 40% of the leaders of technology companies note its success in this area. Only 20% spoke out for Microsoft, IBM’s closest rival in the market for block-technology.
IBM is developing joint blockbuster projects with companies such as Nestle, Unilever and Wal-Mart to track food safety, working with key European banks to facilitate international trade for small businesses, working with the shipping giant Maersk to improve its logistics systems. In addition, IBM has signed a partnership agreement with the blocking start-up Stellar. Its goal is to instantly conduct cross-border payments using the Lumens crypto currency.
For IBM, the development of blockage is another investment in one of five strategic areas: cloud computing, analytics, mobile solutions, security and social technologies. Over time, they must compensate for the decline in such segments as IT services, business equipment and software.
The gradual shift in priorities allowed IBM to show for the first time in six years the revenue growth by the end of the quarter. Its promising technologies and projects, such as block, will provide the company with further growth and relevance of strategic directions.