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Litecoin mining leads high-end AMD graphics card prices to soar

  • This isn't how graphics card prices normally trend: Four months after cards based on AMD's top-of-the-line R9 290X GPU launched at an MSRP of $549, strong demand from cryptocurrency miners (Litecoin miners especially) has led prices to surge to ~$900. Likewise, prices for cards based on the slightly less powerful R9 290 have risen to ~$600, after initially debuting with a $399 MSRP.
  • The increases come even though GPU-based Litecoin mining has become more difficult as more miners join the fray. Bitcoin mining (also becoming more difficult) has increasingly shifted to ASIC-based hardware.
  • While its more powerful GPUs have become more costly, AMD is continuing its aggressive pricing (previous) in the mid-range, as it attempts to regain share lost to Nvidia.
  • The chipmaker recently announced the R7 265, a mid-range GPU that powers $149 graphics cards and delivers a 25% performance gain relative to the older R7 260X (about to see its price cut by $20 to $119).
  • Previous: Litecoin mining triggers AMD GPU shortages
Comments (19)
  • upgrading HOV
    , contributor
    Comments (287) | Send Message
     
    More DEBT. products not selling.. amd worst stock in market cramer downgrades amd $1.00 target.. strong sell... avoid till makes est..
    14 Feb, 07:13 PM Reply Like
  • Joeriii
    , contributor
    Comments (194) | Send Message
     
    more debt because the price soared? alright.
    14 Feb, 07:16 PM Reply Like
  • Tri Duong
    , contributor
    Comments (1452) | Send Message
     
    ??? did you actually read?
    14 Feb, 07:18 PM Reply Like
  • primeafk
    , contributor
    Comments (14) | Send Message
     
    Lol what?
    14 Feb, 07:23 PM Reply Like
  • Philberg
    , contributor
    Comments (68) | Send Message
     
    I think upgrading HOV tried to use irony but didn't succeed :P he can't be serious
    15 Feb, 07:41 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7805) | Send Message
     
    With growing Bitcoin theft and value collapse, I would not think Litecoin "mining" to be the sustainable stock catalyst AMD needs. After all, Litecoin "mining" did not make a noticeable dent last quarter.
    14 Feb, 07:36 PM Reply Like
  • KFed
    , contributor
    Comments (76) | Send Message
     
    Nothing new with what you are saying. The litecoin craze definitely helps in the near term and that is a positive event for the next few quarters. You can't just fixate yourself on the distance future and be screwed by the near term events.
    14 Feb, 10:29 PM Reply Like
  • King Rat
    , contributor
    Comments (557) | Send Message
     
    As I understand it, AMD designs but does not build its processors. Global Foundries and TSMC have more to worry about regarding inventory management.
    Yet as AMD can and does rebadge certain older GPUs with newer names and lower prices, even the foundries do not carry so much risk, especially since they manufacture below thresholds where economies of scale reverse (max. capacity).
    14 Feb, 10:56 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8132) | Send Message
     
    When the "CB Radio Fad of the 21st Century" (crypto-currencies) ends it will be ugly for these processor manufacturers.

     

    Expect sales to plummet.
    14 Feb, 08:35 PM Reply Like
  • King Rat
    , contributor
    Comments (557) | Send Message
     
    If by processor you mean ASIC, we can hope so. There are very few legal activities ASICs can do. CC mining and perhaps folding come to mind. Lots of illegal activities also come to mind that are perhaps already more profitable than mining.

     

    If by processor you mean graphics processors that AMD and Nvidia design, it is not clear how much more they make from OEMs and licensees when the street price rises by 50%. They may not be effected materially. Also, now that most CPUs have at least 2-8 physical or imaginary cores, more applications are being written to support them. GPUs are essentially simplified CPUs with many more cores. As programmers design applications to take more advantage of multi-threading to use more CPU cores, they will have less difficulty offloading even more work to GPUs that are way more powerful on a performance/Watt basis. As that happens, powerful GPUs designed by AMD and Nvidia become more important every day.
    14 Feb, 10:50 PM Reply Like
  • Roger 36
    , contributor
    Comments (63) | Send Message
     
    Thing is AMD did not know that these guys was going to buy out there stock. Amd Stock was based on high end gamers they had no idea that this was going to happen if they did don't u think they would have ordered a lot more chips to be made to keep up with demand ?.
    14 Feb, 09:04 PM Reply Like
  • Roger 36
    , contributor
    Comments (63) | Send Message
     
    ITs not there fault that there Video cards are much faster at mining these coins then anything Nvidia has to offer.
    14 Feb, 09:07 PM Reply Like
  • Rjlv6
    , contributor
    Comments (48) | Send Message
     
    Just an idea but could the slow response be because of the layoffs AMD has done to bring down operating expenses?
    14 Feb, 10:40 PM Reply Like
  • greenleaf1962
    , contributor
    Comments (157) | Send Message
     
    Measured responds seems to be keeping the price going up and the demand strong.
    Over all more news for AMD sounds good to me.
    14 Feb, 11:02 PM Reply Like
  • SA User 74XXXXX
    , contributor
    Comments (443) | Send Message
     
    No matter Litecoin mining is a bubble or not, it is a hurricane blowing away any doubt in AMD's efforts in GPU compute ✌

     

    IMHO
    14 Feb, 11:51 PM Reply Like
  • upgrading HOV
    , contributor
    Comments (287) | Send Message
     
    More debt.. overvalued. and bankruptcy seen amd,. amd warns warns, while ceo files to sale shares soon
    15 Feb, 08:05 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7805) | Send Message
     
    Aren't you busy burning your cash with help from JCP?
    15 Feb, 09:42 AM Reply Like
  • djkidm
    , contributor
    Comments (364) | Send Message
     
    I don't know whose balance sheet is worse; JCP or the WNBA?
    16 Feb, 05:32 PM Reply Like
  • PennyJoe
    , contributor
    Comments (7) | Send Message
     
    Makes sense with payment processor GoCoin.com accepting litecoin and bitcoin to USD, CAD, etc.

     

    People can use the digital currencies to purchase the hardware and mine some more.
    20 Feb, 08:45 AM Reply Like
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