If you know me, you know I’m a numbers guy. I grade stocks from A to F based on things like their Fundamental and Quantitative Scores. So, today’s blog may be giving you pause. Why would a diehard stock investor like me be looking for a way to profit off the rise of an alternative currency like Bitcoin? Well, the answer’s simple. I didn’t find a way to profit off Bitcoin. The way to profit off Bitcoin found me.
For those of you who aren’t familiar with it, Bitcoin is a digital payment system based off of “blockchain” technology. How a blockchain works isn’t important for our purposes at the moment. All we need to know right now is two things. The first is that Bitcoin requires high-powered computer networks for its transactions. The second is that one Bitcoin is currently worth more than $4,500 U.S. dollars. That makes Bitcoin a valuable commodity regardless of what you and I may think about it.
In fact, all the way back in 2013, Bank of America Merrill Lynch said they “believe Bitcoin can become a major means of payment for e-commerce and may emerge as a serious competitor to traditional money-transfer providers." Then, by early 2015, more than 100,000 merchants accepted Bitcoins. But the real spike in Bitcoin’s value has happened over the past year. That’s what I want to show you how to capitalize on today.
Now, the key to this opportunity doesn’t lie in Bitcoin’s overall value. Instead, it relies on the first thing I said you and I need to know about Bitcoin today. That’s the high-powered computer networks required for Bitcoin transactions. Somebody has to build all the graphics processing units (GPUs) and high-powered chips Bitcoin needs for the technology it employs. And that somebody, I believe, is NVIDIA Corp. (NVDA).
As a leading computer graphics’ company, making GPUs for both consumers and businesses, NVIDIA is uniquely positioned to profit as Bitcoin continues to grow in value and use. In fact, NVIDIA expects revenue this quarter to be $2.35 billion, plus or minus two percent. This is well above the Street view of $2.13 billion in revenue. And NVIDIA may see even more demand and sales on their GPUs, chips and any other hardware Bitcoin may use as the digital payment system continues to increase in popularity.
These are only a handful of the reasons NVIDIA maintains an A-rating in my Portfolio Grader tool. Some of the other reasons are its excellent grades in sales growth, earnings growth and return on equity. Not to mention, its overall fundamental strength.
My Blue Chip Growth members know the whole story. In fact, they’ve already seen a 275% gain on NVIDIA since last June alone. But if you aren’t ready to join Blue Chip Growth today, I urge you to stay tuned in right here to this blog where I’ll continue to keep you informed about many of the opportunities I believe today’s stock market has to offer.