Forget Bitcoin, This Hot Tech Stock Is a Better Buy

Bitcoin prices have enjoyed meteoric growth over the past few months as institutional investors and big firms have poured money into the digital currency, but the volatility of the cryptocurrency market has started rearing its ugly head once again.

The price of bitcoin fell to just over $34,000 on Jan. 13 after soaring to more than $40,500 on Jan. 9. Such volatility makes cryptocurrencies such as bitcoin a risky bet for investors looking for stable returns. What’s more, some Wall Street firms are concerned about the value of cryptocurrencies going to zero.

However, there’s no denying that cryptocurrencies are a hot asset class that many want a piece of. But is there a safer way to invest? The answer is yes, and that safer way is through NVIDIA (NASDAQ:NVDA) — a hot growth stock that has set the market on fire over the past year.

NVDA Chart

NVIDIA is benefiting from the cryptocurrency boom already

Cryptocurrency miners use graphics cards from the likes of NVIDIA to “mine” digital currencies. Cryptocurrency mining-related demand accounted for nearly 5% of NVIDIA’s top line three years ago, when cryptocurrency mining was booming. The good news for NVIDIA investors is that the recent surge in cryptocurrency prices has led to renewed demand from miners, especially since the launch of the company’s new Ampere cards.

The graphics specialist sold $175 million worth of GPUs (graphics processing units) to miners in the third quarter of fiscal 2021, according to RBC Capital Markets. While that would be just 3.7% of the $4.73 billion in revenue NVIDIA generated during the quarter, mining-related demand is good for the company in a bigger way as demand outstripping supply has led to higher prices.

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