The Bitcoin market may have brought smiles to the faces of cryptocurrency speculators, but chipmakers AMD will also be laughing to the bank during this bull run. All this is thanks to increased demand from mining operators firing their equipment up again with rising Bitcoin prices making Bitcoin mining favorable once more.
All this is happening while other semiconductor companies are struggling with lowering demands for computer chips. Advanced Micro stocks have not suffered the same fate, however, almost doubling in the past year alone on NASDAQ and still on an upwards trend last month even as other semiconductor stocks wilted in the summer heat.
In comparison, semiconductor makers ETF SMH and Intel lost 14% of their values, while Nvidia posted an even bigger loss in May, shedding 25% of its value. K Asset Management Managing Director of FX Strategy Boris Schlossberg said to CNBC:
“AMD is definitely the star that shines within the SMH group. Analysts are saying they have a better product for the first time in 50 years than Intel does, and they’re getting a tremendous amount of love as a result.”
Schlossberg was quick to point out that Bitcoin’s revival had as much a part to play as company product, with the seemingly imminent rise towards USD 10,000 driving renewed interest in Bitcoin mining. He explained:
“We’ve had a very strong rally in bitcoin. Bitcoin was a big driver of the semi rally when it rallied the first time, so if we get Bitcoin over USD 10,000, we can get it back to that mania of mining again, and that should be an additional tailwind for AMD. So I think AMD is very well positioned.”
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