Analyst of American banking holding Morgan Stanley Joseph Moore published a report with a forecast for 2018 on the decline in sales of video cards, which could adversely affect the financial performance of AMD and Nvidia. This is reported by CoinDesk.
Among the factors contributing to the drop in revenue from the sale of powerful videocards, the analyst pays attention to a decline in the overall block reward on the ethereum network, from 5 to 3 ETH. In general, Moore is confident that in the corresponding segment the largest manufacturers of videocards can lose up to 50% of sales revenue.
We believe that total graphics sales for ethereum mining in 2017 will be $800 [million] or so, and will decline by 50% in 2018; we can validate the 2017 number by looking at the increased complexity of the algorithm. Unless ethereum prices rally, downside variance to our 2018 forecast is more likely than upside.
Analyst, Morgan Stanley
Two weeks ago, Joseph Moore published a AMD video cards sales forecast, reducing his value from "neutral" to "negative". According to the analyst, despite the fact that the company managed to get super profit for some time due to the avalanche demand for video cards for mining, this trend is unlikely to continue in the future.