Home Investment AMD’s stock turns sharply lower as ethereum prices extend selloff

AMD’s stock turns sharply lower as ethereum prices extend selloff

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Shares of Advanced Micro Device erased early gains to close sharply lower in active trade Thursday, as it mirrored the reversal seen in prices of bitcoin rival Ether.

AMD’s stock AMD, +2.88%  surged as much as 1.4% within the first few minutes of trade, before declining steadily. It fell into negative territory about 45 minutes after the open, and was down as much as 6.0% in afternoon trade before bouncing slightly to close down 5.3% at $13.53.

Volume reached 111.1 million shares, surpassing the full-day average of 93.2 million, and enough to make the stock the most actively traded on major U.S. exchanges.

What may have soured sentiment was the intraday reversal in prices of cryptocurrency Ether, which opened up 6.1% before sinking to be down 7.9% at $201.29 in late-New York trade, according to prices provided by Coindesk.

Ether, the underlying currency for the ethereum network, has lost nearly half its value — 49% — from a June 12 closing high of $359.34.

AMD’s selloff bucked the gains seen in the broader technology sector, with the SPDR Technology Select Sector exchange-traded fund XLK, +0.89%  rising 0.2% and the tech-heavy Nasdaq-100 Index NDX, +0.77%  climbing 0.3% on Thursday. Meanwhile, PHLX Semiconductor Index SOX, +1.30%  eased 0.3%.

The fates of AMD’s stock and Ether have been linked, as RBC Capital analyst Mitch Steves wrote in a recent note to clients that AMD’s graphics chips (GPUs) “are the ‘gold standard’ for mining ethereum today.” But AMD shares have been volatile lately, as GPUs of rival graphics-chip maker Nvidia Corp. NVDA, +2.69%  have gained popularity among cryptocurrency miners.

Source: MarketWatch