AMD share price plunged 9 percent after Morgen Stanley report warns lower demand for graphics card for Crytocurrency mining and gaming console

Morgan Stanley released a report downgrading AMD to underweight. It claims that AMD will face demand problems for its graphics processors next year predicting cryptocurrency mining and gaming console demand for its graphics chip business will falter in 2018.

The stock declined 13.5 percent last Wednesday, a day after it gave fourth-quarter profitability guidance below some Wall Street estimates. AMD share price dipped 9% after the report was released and it has brought the $14+ share down to around $10+, which is now 4% down for year 2017. AMD highest share price in 2017 $15.65, 52 Week Range 6.22 – 15.65.

 

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Although analysts believed that the gains were largely due to demand for its graphics processors for mining coins, nothing was mentioned about AMD’s server EYPC and the highly acclaimed Ryzen and Ryzen Pro which will also help in it’s underlying profits.

Mining of crypto coins continue to result in shortages of graphics card as there are bought and sold at high profits in the resale market. It is also capable of mining newer coins. The price of digital currency ethereum is up more than 3,500 percent so far this year, according to Coindesk data.

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