Elazar Warns Crypto-NVIDIA Shorts

Elazar Advisors warned NVIDIA NVDA shorts of multiple near term drivers that can offset the drop in crypto. They added that the recent jump in bitcoin prices breaks a technical downtrend which can also add steam back to the upside for the NVIDIA story.

After speaking to the company, Elazar believes that NVIDIA will have to refill a very tightly supplied GPU channel with inventory to meet gamer demand. Even if crypto-miner demand slows GPUs will be sold to gamers which offsets the crypto weakness. 

They also mentioned that there is strong seasonality in the July quarter for gamer GPUs. They added there may be a potentially new GPU launch to replace Pascal later in the year.  The stair-step of fundamental drivers can more than offset crypto volatility.

Datacenter was also a big call out by Elazar saying, "there's a chance it can jump as it did in past April quarters."

As for NVIDIA's auto division they pointed out that it's only about 5% of the business. Taking the five autonomous vehicles off the road should not have any material financial impact.

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