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Advanced Micro Devices, Inc. (NYSE:AMD): Graphics Card Selling Out Wrongly

Boston, MA 12/13/2013 (wallstreetpr) – Advanced Micro Devices, Inc. (NYSE:AMD) and NVIDIA Corporation (NASDAQ:NVDA)’s graphics cards are now being used at an accelerating rate because of their calculations that are computationally intensive. In some of the cases, these cards provide good performance boost when compared to other CPUs. The rapid and sudden emergence of crypto currencies like litecoin and bitcoin has led to an increased sale of high-end GPUs of Advanced Micro Devices which until now, scientific simulations were the main applications. However, the demand is not that sustainable and if there is lack in availability of graphics cards, the customers will then switch over to NVIDIA cards.

Why Need GPUs?

Whenever a computer does a certain amount of work, that is, a series of complex calculations, bitcoins are generated. This digital coin is given to the person who did the calculations. Now, as the number of coins increases, it becomes more time consuming and more difficult to create coins. This is the way crypto currencies work.  In the early days when the complexity of the calculations rose, GPUs were used to generate coins rapidly. However, at some point, the cost of using CPU exceeded the coins generated. When litecoin was created in 2011, its popularity increased and people began to take more interest in it. But the design of litecoin needed some memory which was only possible using high-end graphics cards.

AMD Is Winning

It is observed that the graphics hardware from the company is more efficient in mining the crypto currencies as compared to the hardware from NVIDIA. The latest high-end cards of the company, the 280X and 290X are sold out almost completely, which shows the popularity of the graphics cards of the company. The unit, kilo-hashes per second, measures the performance of graphics cards. Here, hash is the operation for generating the coin. So, 290X of the company can do approximately 990 kH/s whereas GTX Titan of NVIDIA can do only 485 kH/s.

Published by Nicholas Maithya

Nicholas is a Financial Analyst by profession, who enjoys writing about investments, technological developments, business, economics and other financial topics at various financial publications. Join him here on Wallstreetpr.com as he endeavors to deliver to you the latest breaking news on the above mentioned fronts. Contact him by email at [email protected] or follow Nicholas Kitonyi @nmaithyak on Twitter.

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