NVIDIA Corp. (NVDA) stock has been soaring the past year, in part on its role in 澳洲幸运5官方开奖结果体彩网:cryptocurrency mining,&n♍bsp;but an RBC Capital analyst says those days are coming to an end.

NVIDIA produces 澳洲幸运5官方开奖结果体彩网:graphics processing units (GPUs) used for crypto mining, which adds to the 澳洲幸运5官方开奖结果体彩网:blockchain of a currency. With the massive gains in bitcoin and other 澳洲幸运5官方开奖结果体彩网:cryptocurrencies, those chips have been in high demand. But Mitch Steves of RBC Capital says the economics of mining for cryptocurrencies has broken down and that mining with computers and chips from NVIDIA or its competitor, Advanced Micro Devices Inc. (AMD), is increasingly less profitable. (See also: Billionaire Jack D🍬orsey Bets on Blockchain as Bitcoin Price Craters.)

Steves said a “proof-of-stake,” which is an algorithm that chooses the next block creator that will go live by the end of the year, will eliminate the need for mining for the cryptocurrency ethereum. “This means all chips (even custom-made chips for GPU mining) would not generate any value/profit," .

Beyond the Next Quarter

Still, Steves, who has an 澳洲幸运5官方开奖结果体彩网:outperform rating on NVIDIA, said that short-term demand for NVIDIA’s chips to r♏eplace inventories could boost the company’s next quar♐terly results. But, for the quarter ending in July, he expects demand to decline and as “crypto mining should no longer see a ramp-up.”

Bitcoin’s value was recovering Monday, up about 4% at $8,702.47 against the U.S. dollar even as Twitter Inc. (TWTR) was reportedly considering the same ban on crypto-related material that Alphabet Inc. (GOOGL) and Facebook Inc. (FB) recently implemented. (See also: Bitcoin Pricꦰe Rallies Amid Tꦆwitter Cryptocurrency Ban Rumors.)

NVIDIA shares are up 133% in the past year, and upౠ about 11.5% in the past month. The company is scheduled to report quarterly earnings on May 9.

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