AMD: Our crypto boom is over

https://www.businessinsider.com/amd-stock-price-crypto-bitcoin-boom-over-earnings-call-2018-7

by sonnyblarney • 8 years ago

17 14 8 years ago

mtgx• 8 years ago

I think the main problem is that both Nvidia and AMD miss the cycles of bull runs. They start pumping out GPUs for the crypto market when the market is almost at its peak. Then, the market crashes and they're left with a factory full of unsold GPUs. Then another bull run happens, and they're left without any card for a couple of months.

aeleos2• 8 years ago

But this is something you that they never really had to deal with before. Previously, graphics cards were not really correlated with any kind of market. And sales ramped up and down predictably. They had no reason to put money into being able to quickly ramp up production within a few weeks or a month. And now it’s no surprise that they can’t keep up with the fast paced crypto ups and downs.

pjmlp2• 8 years ago

Other than games, 3D visualization, modelling that is.

dragontamer• 8 years ago

It takes months to ramp up GPU production. Crypto booms-and-busts before the production cycle is even over.

The only way to stop that is to stockpile GPUs, which is a very, very bad idea because new GPU technology is inevitable. Even ignoring GPUs, there's also new mining equipment (see Antminer's Ethereum miner).

The GPU boom is over because Antminer made an Ethereum rig. The end, GPUs will never be as good as the ASICs. So holding onto lots of old GPUs isn't a strategy either.

sonnyblarney• 8 years ago

Yeah, but aren't margins on chips insanely high, i.e. unit cost of production is 'nothing' whereas the IP going into it and 'setting up the run' are the big charges?

So I think that if they are making new chips for this dead market, then they have a problem.

But inventory I think is a different story.

Feel fee to correct me if I'm wrong.

shmerl• 8 years ago

Good, finally GPUs will be affordable again. Prices were simply crazy for a while.

JudasGoat• 8 years ago

When DDR4 drops back to DDR3 numbers, I'll build a new PC. I'm betting we'll see 7nm by then.

okket2• 8 years ago

Despite a recent uptick above $8,000, bitcoin, still the world's largest cryptocurrency by market cap, is down 39% since this year.

What a clickbait article. The Twitter cards mentions Bitcoin, it is even in the article. But nobody mines Bitcoin with GPUs since 5+ years anymore. It's ASIC or bust since 2013.

bdcravens2• 8 years ago

Yes, but you can mine other cryptocurrencies with GPUs. The market as a whole tends to move with Bitcoin's price, and many of those cryptocurrencies are traded for Bitcoin.

okket2• 8 years ago

Still, it is bad journalism and fishing for clicks to mention Bitcoin as if AMD GPUs were directly related, without further clarification.

AMD: Our crypto boom is over

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