Shares of Advanced Micro Devices Inc. and Nvidia Corp. are up 2.4% and 1.5%, respectively, in Tuesday morning trading after Morgan Stanley analyst Joseph Moore penned an upbeat note about their cryptocurrency mining businesses. He initially expected that mining revenue would “decelerate meaningfully” beginning in the fourth quarter, but he’s more optimistic now given higher Ethereum prices. He increased his quarterly revenue estimates for both firms by $100 million, though he cautions that at AMD especially, the mining business could be masking weakness in other areas of the company. “Certainly a shortage in AMD graphics cards is limiting traction in the longer-lived gaming business,” he wrote. Analysts at Susquehanna Financial Group also talked up the two firms’ crypto businesses in a note last week. AMD shares are up 31% over the past 12 months, while Nvidia shares have gained 125%. The Philadelphia Semiconductor Index is up 50% in that time, compared with a 25% gain for the S&P 500 .
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