AMD Stock Downgraded, Bitmain Releasing Ethereum ASIC Miner

rgMekanic

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A report today from Smarter Analyst states that Susquehanna analyst Christopher Rolland is downgrading AMD stock to negative from neutral, with a $7.50 price target. The reason for the downgrade? Bitmain is planning to roll out a new ASIC miner for Ethereum, each having 3 motherboards, and each motherboard having 6 ASICs, and 32GB of DDR3.

Sounds like you may want to get jumped out of the Hodl Gang. I wonder if this is the cause of Ethereum dropping around 10% today. In related news I'm paying $200 for a Vega 64, PM me. Thanks to cageymaru for the story.

Rolland commented, “We confirm a Bitmain Ethereum ASIC. In today’s “The Steam Shovel Cometh… ETH Mining Gets its ASIC”, we downgrade AMD to Negative as we confirm the existence of a Bitmain ASIC for Ethereum mining. While we acknowledge this call is early, as significant GPU channel replenish is needed, we estimate ~20% of AMDs sales are Ethereum related.”
 
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Nvidia has a much larger reliance on mining for sales, the manipulation attempts are just astounding I'm surprised the SEC hasn't just banned Shorting and options on AMD stock.
 

Archaea

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ASIC for ETH would be a HUGE strike against AMD cards (and to a lesser extent Nvidia -- simply because Nvidia mines other algorithms more profitably than ETH).

I'll be interested to see the hash rate on this new ETH miner.

For those not keeping up on mining or this type of tech --- in comparison the ASIC I bought from Bitmain for sia coin, the A3, mined the equivalent of ~275, 1080TI GPUs. The A3 costs $2,750, and only used 1,300 watts of power.
By contrast 275 1080TI cards costs $192,000 and used 50,000 watts of power (in typical undervolt/overclock). Basically overnight the first batch of Bitmain ASICs for sia coin made all GPU mining unprofitable.

Depending on the hash rate of this ASIC, you can prepare to see an absolute deluge of RX470, RX480, RX570 and RX580 cards on the used market.

Probably not too many AMD Vegas will be affected by ETH asics as they are primarily mining cryptonite algorithm.


I added 1 of each of these cards to the Whattomine profitability calculator -
RX470, RX480, RX570, RX580
and currently that 4 card combination is grossing an average of $4.15 per day (net $2.92 after electricity cost) over the last 7 days mining ETH.

The second highest profitability is Equihash mining Zcash grossing $2.63 (net $1.53)
(ignoring Neoscript because that's so volatile that most people don't mine it - including myself).

Cryptonight is only $1.92 a day (net $.87) That'll be unprofitable after electricity if all the ETH miners switch to it.


http://whattomine.com/coins?utf8=✓&adapt_q_280x=0&adapt_q_380=0&adapt_q_fury=0&adapt_q_470=1&adapt_470=true&adapt_q_480=1&adapt_480=true&adapt_q_570=1&adapt_570=true&adapt_q_580=1&adapt_580=true&adapt_q_vega56=0&adapt_q_vega64=0&adapt_q_750Ti=0&adapt_q_1050Ti=0&adapt_q_10606=0&adapt_q_1070=0&adapt_q_1070Ti=0&adapt_q_1080=0&adapt_q_1080Ti=10&eth=true&factor[eth_hr]=113.6&factor[eth_p]=510.0&grof=true&factor[gro_hr]=66.5&factor[gro_p]=475.0&x11gf=true&factor[x11g_hr]=24.5&factor[x11g_p]=485.0&cn=true&factor[cn_hr]=2780.0&factor[cn_p]=435.0&eq=true&factor[eq_hr]=1100.0&factor[eq_p]=460.0&lre=true&factor[lrev2_hr]=20500.0&factor[lrev2_p]=480.0&ns=true&factor[ns_hr]=3020.0&factor[ns_p]=580.0&lbry=true&factor[lbry_hr]=425.0&factor[lbry_p]=520.0&bk14=true&factor[bk14_hr]=4990.0&factor[bk14_p]=515.0&pas=true&factor[pas_hr]=2470.0&factor[pas_p]=535.0&skh=true&factor[skh_hr]=67.8&factor[skh_p]=445.0&n5=true&factor[n5_hr]=73.0&factor[n5_p]=445.0&factor[l2z_hr]=420.0&factor[l2z_p]=300.0&factor[xn_hr]=3.2&factor[xn_p]=240.0&factor[cost]=0.1&sort=Profitability7&volume=0&revenue=7d&factor[exchanges][]=&factor[exchanges][]=abucoins&factor[exchanges][]=bitfinex&factor[exchanges][]=bittrex&factor[exchanges][]=binance&factor[exchanges][]=cryptopia&factor[exchanges][]=hitbtc&factor[exchanges][]=poloniex&factor[exchanges][]=yobit&dataset=Main&commit=Calculate
 
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Archaea

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is this like the monero asic thats about to get bumped by a fork?


It's rumored that if asics come to ETH, then the devs would consider moving to Proof of Stake instead of Proof of Work. But that's likely to have the same net result for ETH miners because ASICs would still replace all the AMD GPUs currently doing this work.

The Monero fork instead would supposedly just brick the Bitmain Asics -- and still continue to be a proof of work algorithm.
 

Imhotep

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I don't think you will see all those 570-580's anytime soon. A great portion of 580 users have already moved to cryptonight. A 580 gets you high 700 to low 800. at 70 watts in XMR. Nothing will change. :D
 

Archaea

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I don't think you will see all those 570-580's anytime soon. A great portion of 580 users have already moved to cryptonight. A 580 gets you high 700 to low 800. at 70 watts in XMR. Nothing will change. :D
and when the hoarde of RX 4xx/5xx miners move to XMR (as the next profitable algorithm after ETH) - with the difficulty increase it won't stay nearly as profitable for anyone involved.


also Vega hits closer to 2,000hp/s on cryptonight -- so as more of those continue to enter the picture..........
 

Archaea

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So, an analyst can downgrade stock across the board, all on his or her own? One person can say, Hey, I think this stock needs to be downgraded, and down it goes?

First answer this question:
Do you think only 20% of AMD GPU sales are related to Crypto? (as the analyst who downgraded AMD states...)
 
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Verge

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So, an analyst can downgrade stock across the board, all on his or her own? One person can say, Hey, I think this stock needs to be downgraded, and down it goes?

Yes and no. The stock doesn't necessarily go down.
 

Sindalis

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You know... I hope this is true for a different reason.

What better time to have an ASIC come on for Etherium right before the Ryzen Refresh launch.

All the people buying new systems would suddenly have a huge flood of cheap GPU's they could get second hand...

From a consumer standpoint and AMD's standpoint, while they would lose the sale to miners... they could easily just slow down production as they are so backed up right now to just be able to refill the Chanel for the people wanting new cards.

There is no huge warehouses sitting with cards right now and as long as they don't overstock... reality is they cant lose with this and only gain for this FY. Next FY is a different ballgame though... They need a new GPU to battle Nvidia at some segment or that part of the business will tumble w/o crypto.
 

alamox

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seriously no bad feelings for AMD getting rekt by miners, this will teach them to fill planes and send them card directly by the tons, while gamers scrap for twice the price.
this time around AMD didn't increase production, so the sting will hurt less, besides they have no plans to release any new gpu this year, so even better, just focus on ryzen and integrated graphics.
still hoping for normal nitro vega 56 price drop, and... stock...
 

Mega6

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10 support is very strong. A buy here all day long with a forward PE of 19.
 

ManofGod

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On the other hand,

https://themerkle.com/theres-no-point-in-bitmain-developing-an-ethereum-asic-miner/

I can't imagine ethereum would let an asic stand, besides POS.

LOL miner H8rs, poor babies, Wa wa waaaa! need your baby bottle?

Really dude? I own a Vega 56 that I purchased before mining kicked in and even I think the prices are stupid. Oh well, poor baby, I will not shed a tear for you when your investment comes crashing down around your ears, you do not shed one for me when I continue to enjoy my purchased, agreed? :D
 

WhoMe

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I will pay exactly 1 cent for a used graphics card...I have a hard enough time with new ones after a year or three, and my type of gaming hardly stresses them.
 

cdabc123

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Guys this is fud. 1. Ddr3 mem bandwidth isn't anything spectacular even with 32 gigs worth. 2. Do you really think someone would spend the time developing a asic for a coin with developers as active as ether? The answer is no because they could change the algo to make it resistant to this asic in a heartbeat.
 

defaultluser

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As a gamer this is great news, hopefully card prices will be returning to sanity.

No, I guarantee the miners will just move on to a new coin (or existing coins will switch algos). It's not like they can only have a singe coin right now - Etherium is just peaking right now, so it's in the news - because it was created to be ASIC-resistent.

If Etherium implodes, the miners will just switch to the next coin. There are dozens of them to bet on. And eventually one will come out on top...again.

You won't see prices fall back down until we have mining farms in datacenters everywhere.
 

cdabc123

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You mean this CryptoNight?


monero is switching algos before those see the light of day. all other coins that rely on cryptonight can switch with monero (etn) as long as the developers are fairly active.
 

cdabc123

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and if you people want some trading advice dont listen to the news. thats the stupidest thing to do when it comes to crypto where manipulation is legal. wait for the stupid people to sell off there coin and shares then buy and hold.
 

cdabc123

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As a gamer this is great news, hopefully card prices will be returning to sanity.

they will slowly decrease in price untill the next price jump. if you see a decent deal now or in the near future buy it. The stupid cheap cards are still along way out.
 

os2wiz

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A report today from Smarter Analyst states that Susquehanna analyst Christopher Rolland is downgrading AMD stock to negative from neutral, with a $7.50 price target. The reason for the downgrade? Bitmain is planning to roll out a new ASIC miner for Ethereum, each having 3 motherboards, and each motherboard having 6 ASICs, and 32GB of DDR3.

Sounds like you may want to get jumped out of the Hodl Gang. I wonder if this is the cause of Ethereum dropping around 10% today. In related news I'm paying $200 for a Vega 64, PM me. Thanks to cageymaru for the story.

Rolland commented, “We confirm a Bitmain Ethereum ASIC. In today’s “The Steam Shovel Cometh… ETH Mining Gets its ASIC”, we downgrade AMD to Negative as we confirm the existence of a Bitmain ASIC for Ethereum mining. While we acknowledge this call is early, as significant GPU channel replenish is needed, we estimate ~20% of AMDs sales are Ethereum related.”

Fat chance for a $200 Vega 64 unless the Great Depression has a second coming next month.
 

Imhotep

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Rgmechanic needs to get his 411 first In order to make any posts regarding crypto. This thing you posted a pic of will be obsolete before it sees the light of day :D
 

lcpiper

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So, an analyst can downgrade stock across the board, all on his or her own? One person can say, Hey, I think this stock needs to be downgraded, and down it goes?


The opinions of a well respected analyst in any field will have weight.

But this is the Analyst they are talking about;
https://sig.com/
logo.png
 

Stoly

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So its only going to get worse for ETH. It already lost more like 60% of its peak value.
 

lcpiper

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On the other hand,

https://themerkle.com/theres-no-point-in-bitmain-developing-an-ethereum-asic-miner/

I can't imagine ethereum would let an asic stand, besides POS.

LOL miner H8rs, poor babies, Wa wa waaaa! need your baby bottle?


You know, if you think that these guys are calling you a "miner", that the hate is for you, and not a Chinese Company that has mining sites in China, thinking of moving them to Canada, ect.

Then it's you that has the problem, a self image problem for sure.

Take the fucking label off your chest, the one you are putting there yourself.

Nobody here put it on you.
 
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