AMD shares are surging with bitcoin because digital currency 'miners' need its graphics cards

AMD shares rose as much as 7 percent Tuesday after the company revealed the dramatic jump in digital currency prices is driving demand for its graphics cards. The stock was the top performer in the S&P 500 on the day.

"The gaming market remains our priority. We are seeing solid demand for our Polaris-based offerings in the gaming and newly resurgent cryptocurrency mining markets based on the strong performance we are delivering," an AMD spokesperson wrote in an email to CNBC late Monday.

Ethereum cryptocurrency is up over 2,900 percent year to date through Tuesday morning, while bitcoin is up nearly 200 percent this year, according to data from industry website CoinDesk. The digital currency jumped more than 8 percent at one point Tuesday to a record nearing $3,000.

AMD is one of the market's best performing stocks in the past year with its shares up nearly 170 percent in the past 12 months through Tuesday morning compared with the S&P 500's 15 percent return.

Cryptocurrency miners use graphics cards from AMD and Nvidia to "mine" new coins, which can then be sold or held for future appreciation. AMD traditionally has a better reputation for mining cryptocurrencies.

Computer hardware retailers are sold out of most AMD RX 570 and RX 580 graphics card models, according to NowInStock. AMD launched the RX 500 series of graphics cards on April 18.

The strong demand is spreading to older graphics cards as well. Used AMD RX 470 graphics cards are selling for well over $100 list price on eBay.


SOURCE:http://www.cnbc.com/2017/06/06/amd-surges-because-bitcoin-miners-need-its-graphics-cards.html


Comments


[20 Points] SIGINT-OPSEC:

Maybe we'll see a surge in mining equipment, since it might finally be worth it.

As an aside, I wonder if this will give AMD the push it needs to start overtaking Nvidia and Intel, especially given the recent reception to Intel's i9 announcement.


[4 Points] None:

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[3 Points] zysr90:

I had 1000btc when it was 2 dollars. spent it on weed. got over it though dont really care about money anymore


[1 Points] KnightMirror:

What is it that makes these Rad 5x GPUs so much better than, say, the NVIDIA Pascal 1080 GPUs?

I haven't read in to mining too much, but I know it makes sense to use your GPU to maximize efficiency... do Xeon's and similar chipsets fair well with their performance in multiple virtual instances though?


[1 Points] None:

My mate is setting up a mining rig he has like 6 graphics cards and all that shit. I use his place as a drop and he has got into mining etherium


[1 Points] None:

My mate is setting up a mining rig he has like 6 graphics cards and all that shit. I use his place as a drop and he has got into mining etherium


[1 Points] Blugputts:

They also just dropped the new CPUs with thread ripper. Linus also tore the i9 to pieces. Definitely looking good for AMDeez


[1 Points] ksosk:

I'm predicting that Intel's hurried Kaby Lake X release will disappoint consumers, which can only mean good things for AMD as far as the enthusiast circuit is concerned.


[1 Points] throwahooawayyfoe:

Well you know what they say... the folks that get rich during a gold rush are the ones selling the shovels.


[1 Points] squazify:

What year is this?


[1 Points] Hairybristols:

Glad i bought shares in this company. They have increased by $4k


[-6 Points] None:

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