The stock of NVIDIA Corporation (NASDAQ:NVDA) has been on declining spree and yesterday was no exception. On Tuesday, NVDA declined more than 3% to close the day at $139.33. However, the decline came at a low share volume of 26,317 compared to average share volume of 24.80 million. Another stock that recorded a red close in the last trading session was Advanced Micro Devices, Inc. (NASDAQ:AMD), which dropped more than 2% to close the day at $12.15.
Advanced Micro stock has been trading weak, amid increasing worries that cryptocurrency miners may begin going elsewhere for the graphics cards. Christopher Rolland expressed that after a trip to Asia, he can validate recent media reports that NVIDIA will launch two new cryptocurrency-specific GPUs during the third quarter. As these new offerings are increasingly price competitive, they may create a stiff competition to AMD’s current products in the market. The latest cards may challenge Advanced Micro’s alt-crypto coin dominance.
AMD has run up more than 15% in this year, after surging almost fourfold last year, supported by news that Apple would use Advanced Micro’s chips in its latest iMac Pro. The move was also supported from an increase in demand from hard-core gamers and cryptocurrency miners and optimism over the launch of unique Epyc chips for the enterprise unit.
Nvidia’s stock has also rewarded shareholders immensely in this year. It has surged over 35% year to date after tripling in 2016, following a strong show in the server segment and the prospect for growth the autonomous vehicles industry.
While the gaming business remains challenging, conservative gaming projections for the remaining of the year could see positive revision, as near-term mining and cryptocurrency trends are impacting GPU shortages and pricing, together with new auto ramps and wins at ZF.
Although Advanced Micro has held a key position in the cryptocurrency industry, the dominance can be challenged by poor supply of GPUs and from a low priced part supplied by Nvidia.