A sharp run-up in digital currency values didn’t just benefit crypto traders in the final months of 2017. Advanced Micro Devices will likely get a share of the riches, according to MKM Partners analyst Ruben Roy.
Roy has turned more bullish on AMD on the calculation investors have yet to price in a boost from the cryptocurrency markets. The chipmaker is scheduled to report earnings after Tuesday’s closing bell.
“The near-term numbers both for December and the guide for March are going to be quite good,” Roy told CNBC’s “Trading Nation” on Monday. “I think the setup for crypto is quite good.”
Recent channel checks by MKM suggest strong demand for processing chips, especially graphics chips, used in cryptocurrency mining. Chipmakers such as AMD and Nvidia have seen increased sales of high-powered chips in recent years as cryptocurrency mining and trading have grown in popularity.
Some of the most popular cryptocurrencies, including bitcoin and ethereum, at least doubled their price in the fourth quarter. MKM Partners expects a nearly 14 percent quarter-on-quarter decline in AMD sales, a shallower drop than previously expected and slightly higher than consensus. Read more from cnbc.com…
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