Crypto Mining Popularity PWNs Gamers

Innovation, News | June 21, 2017 By:

Video game enthusiasts are having a tough time finding high-end graphics cards for their rigs, as manufacturers are experiencing surging demand from China and Eastern Europe cryptocurrency miners.

Chipmaker Nvidia Corp., whose shares were downgraded by one securities firm weeks ago, has suddenly reversed that opinion thanks to a sharp uptick in sales.

“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 of Pacific Crest Securities on Tuesday. “The sharp increase in demand from cryptocurrency miners has rapidly depleted excess channel inventory carried into the quarter.”
Advanced Micro Devices Inc. (usually known by its acronym, AMD) is another beneficiary of the boomlet.
While there have been previous boomlets, cryptocurrency has never had a higher profile in the mainstream, and prices are near all-time highs for the two most prominent, bitcoin and ETH. The losers from that are those building a gaming PC, which require AMD’s Radeon RX 570 or 580 or Nvidia’s GeForce cards for optimal gaming performance.