Markets talked about the Ethereum (ETH) merge for years. At that time, it did not happen. As the deadline approaches, chances are better this time that Ethereum will move away from proof of work.
On the stock market, Nvidia (NVDA) shares already by 16% in the last week and nearly 30% in the last month. The firm warned investors that PC builders have low demand for the current generation graphics cards (GPUs). Low mining rates are the hidden reason for the weaker GPU sales.
The switch of the Ethereum blockchain away from proof-of-stake is good news for the climate. Crypto mining consumes tremendous amounts of power. Amid climate change and energy shortages, the Ethereum switch will shake up the sector.
Regulators may investigate the impact of Bitcoin on global energy demand after the Ethereum merge. In addition, non-fungible tokens will still use the proof-of-work chain. However, the NFT sector will need to consider following Ethereum's merge. ESG investors might pressure the NFT industry.
Your Takeaway
Tech investors should avoid hardware suppliers that rely on crypto mining. Nvidia may continue facing selling pressure. AMD may fall by association. Intel (INTC), which has an insignificant business in ASIC mining, may underperform a while longer.
