Pacific Crest reverses Nvidia downgrade; shares up 1.6%

|By:, SA News Editor

Pacific Crest reverses its April downgrade and pushes Nvidia (NASDAQ:NVDA) from Underweight to Sector Weight due to cryptocurrency mining driving up graphics card demand.

Analyst Michael McConnell writes that the Q2 demand would feature a surge from miners in China and Eastern Europe, rather than showing the quarter’s typical seasonal weakness. 

McConnell notes that surveyed graphics card manufacturers expect the demand to last until August at the latest and that a similar surge in 2013 was quickly followed by an inventory correction.   

Nvidia shares are up 1.6% and have rallied over 236% in the past year.