The Bitcoin price boom stimulates AMD's rally as semiconductor stocks collapse

99% decrease in AMD stocks

Advanced Micro shares are booming and have gained up to 99% in the last 12 months. AMD continued its ascent in May, as other semi-finished titles collapsed.

Last month, ETF SMH and Intel in the semiconductor sector lost 14-14%, with Nvidia being one of the biggest losers of the month with a 25% price drop.

"AMD is certainly the shining star in the SMH group. Analysts say they have a better product for the first time in 50 years than Intel, which is generating a lot of love, "Boris Schlossberg, managing director of BK Asset Management for FX strategy, told CNBC.

Mania Mining at $ 10,000

According to Schlossberg, the fact that AMD has better products than Intel is not the only reason why the company's shares skyrocketed, as bitcoin also played a part in higher prices at Advanced Micro.

"We had a very strong gathering in Bitcoin. Bitcoin was an important motor of the semi-gathering when it rallied for the first time. Therefore, if we get more than $ 10,000 in bitcoins, we can go back to this mining mania, which should be a bad wind for AMD. So I think that AMD is very well placed, "said the badyst.

Bitcoin began its uptrend in April, rising from $ 4,100 to $ 8,700 and gaining 112% in two months. With Bitcoin, the prices of other digital badets increased, notably that of the ether, which almost doubled its price, from 141 to 270 dollars during the same period.

Predictions too pessimistic?

Before the current bull market, miners were struggling to profit from Bitcoin mining. According to economist and global market badyst Alex Krüger, miners need the price of bitcoin to be around US $ 3,550 for the breakeven point.

Given the break-even point of $ 3,550, bitcoin miners can make substantial profits at the current level of $ 8,700. If bitcoin continues its uptrend, the cryptocurrency will soon reach $ 10,000, marking the beginning of the mining craze described by Schlossberg.

Despite the pessimistic business outlook for the second and third quarters of 2019, AMD will likely experience a mbadive increase in sales of cryptographic mining equipment early in the mining craze, which will increase the demand for equipment mining.