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AMD Stock Jumps 14% On Strong First Quarter Earnings | Fortune

AMD’s stock, which has been on a rollercoaster this year, jumped 14% on Thursday in midday trading to $11.08. That’s still well down from the 10-year high of $15.65 hit last July, but 16% higher than the price just two weeks ago.

That’s likely because part of Su’s struggle with Wall Street has nothing to do with AMD’s (AMD, -2.03%) own strategy, or even the competition from Intel (INTC, -2.86%) and Nvidia (NVDA, -0.68%). Instead, a major concern revolves around just how much buying demand for AMD graphics cards is coming from digital currency mining operations and how volatile that demand might be as prices of the currencies decline.

Last year, when the prices of various digital currencies such as Ethereum skyrocketed, the computer mining activity that runs on graphics chips like AMD’s new Vega line skyrocketed, too. Now that cryptocurrency prices have retreated somewhat—Ethereum’s is less than half what it was in early January—analysts predict mining activity will wane. Last time that happened, back in 2014, it flooded the market with used graphics cards killing sales at AMD and its competitors.

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AMD Stock Jumps 14% On Strong First Quarter Earnings | Fortune.