Join our Telegram Channel!Get Bitcoin News stories in Telegram × DismissPlease verify you are a human Please click "I am not a robot" to continue Access to this page has been denied because we believe you are using automation tools to browse the website.This may happen as a result of the following: Javascript is disabled or blocked by an extension (ad blockers for example) Your browser does not support cookies Please make sure that Javascript and cookies are enabled on your browser and that you are not blocking them from loading.Advanced Micro Devices Inc.(AMD) and NVIDIA Corp.(NVDA) shares have been surging as investors bet demand for its graphic chip cards used to mine for cryptocurrency​ will continue unabated.(See also: What is Bitcoin Mining?)But while the likes of Bitcoin​ and other digital currencies have been seeing huge gains in their prices, prompting scores of people to get into mining the coins, which requires computers with high-end graphics processors, some are warning the party could soon be over, which will pressure shares of both semiconductor companies.

The computer-created coins people mine can either be held or sold for a profit.Gamers According to a report in MarketWatch, the highly speculative cryptocurrency market has resulted in both companies' graphic cards being hard to come by.When they are available, they often sell for much higher than the manufacturer's suggested retail price.That demand has even prompted Pacific Crest Securities bear to turn bullish and upgrade its rating on NVIDIA to sector weight from underweight.ethereal for linux“Meetings with desktop graphics card manufacturers indicated a sharp reversal in sales trends expected for the seasonally weaker 2Q, with surging demand from cryptocurrency miners in China and Eastern Europe," analyst Michael McConnell wrote in a research note to clients.ethereum mh/s"The sharp increase in demand from cryptocurrency miners has rapidly depleted excess channel inventory carried into the quarter."bitcoin will reach 100 000

(See also: Why AMD and Nvidia Are Poised for Their Biggest Drops.)But that wild demand also presents a lot of risk given that its only being driven by a speculative market.According to Marketwatch, there are just as many people who are unhappy with the cryptocurrency frenzy as there are who are making a profit from it That’s particularly true of PC gamers who have long been loyal customers to the chip companies.That segment of the market is getting increasingly frustrated when looking for graphic cards from AMD and NVIDIA to purchase.bitcoin euaThey are not only angry but are shifting their focus elsewhere, which could pressure sales in the future.nvidia and bitcoin miningWhat’s more, once the cryptocurrency bubble pops or people stop making huge profits, it could result in less demand for their cards, leaving them with excess inventory.ubs on bitcoin

Their components could eventually find their way to resale markets, reducing their value significantly.If it happens while the two are in the midst of launching new graphic cards, it could hurt sales as the slightly older hardware is selling for a bargain price, noted Marketwatch.Want to learn how to invest?Get a free 10 week email series that will teach you how to start investing.Delivered twice a week, straight to your inbox.No thanks, I prefer not making money.There are many reasons for investors to buy chipmakers Nvidia and Advanced Micro Devices, but the recent rush for an indirect way to play skyrocketing cryptocurrencies bitcoin and ethereum should not be one of them, CNBC's Jim Cramer said Friday."One of the reasons why AMD and Nvidia have been going up is their chips are used for mining, for cryptocurrency mining," Cramer told "Squawk on the Street."But he warned, "Do not play it for this is what I'm saying.But it is being played for that."Bitcoin and ethereum miners use powerful graphics processing units — or the computer chips on graphics cards — to generate new cryptocurrency units, which can then be sold or held for future appreciation.

Cramer cited a recent note from RBC Capital Markets, which said the growing cryptocurrency mining market has contributed $100 million worth of GPU sales for Nvidia in the past 11 days alone."AMD chips are the best ones for the ethereum platform," he added."Of course there are so many other uses for their chips, but a lot of retail people love bitcoin and are looking for a way to play it," Cramer said.In the past 12 months, bitcoin has soared about 325 percent to around $2,703 per unit as of midmorning trading on Friday.Ethereum, the smaller bitcoin rival, has skyrocketed about 2,240 percent to around $328.In the past month, as the cryptocurrency surges have been more widely reported, AMD shares have soared 33 percent and Nvidia stock has gained about 15 percent."You play Nvidia for artificial intelligence, for GPUs, for autonomous cars, and for gaming," he said."You play AMD for gaming and they have a faster chip than Intel."Buying the stocks for those reasons, not because of cryptocurrency mining, makes sense, Cramer concluded.

Watch: AMD shares are surging with bitcoin because of digital currency 'miners' Matthew J. BelvedereOn the 1st of December 2016, Microsoft released their new Nvidia-powered Virtual Machines(VMs) to the general public.They came with two options of GPUs: NVIDIA Tesla K80 or the NVIDIA Tesla M60This sort of GPU is meant for scientific research and video encoding yet as I rushed to get my hands on one of the VMs, I was wondering what I would do with it and the idea struck me: ‘Bitcoin Mining!YES!, I could make thousands of pounds with these amazing GPUs’, I foolishly thought as I deployed a Ubuntu 16.04 VM.I chose the NV-12 variant, which offered 2 M60 GPUs with 12 cores and 112GB of RAM.But this came at a price; £1,275.37 to be exact.Obviously, I could not afford this and my dreams began to fade as I opened the calculator and calculated that the VM would cost £1.77 per hour.I still had hope that perhaps I could mine more than this in an hour.I started up PUTTY and connected to the machine.