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AMD GPU Sales Go South as the Demand for Cryptocurrency Mining Units Plummets

AMD GPU Sales Go South as the Demand for Cryptocurrency Mining Units Plummets

Reading Time: 2 minutes by on October 26, 2018 Altcoins, Bitcoin, Mining, News, Platform, Tech

According to its quarterly financial results report, the American semiconductor manufacturer company AMD had almost negligible sales of blockchain-related graphics processing units in Q3 of 2018. The financial report was published on October 24, 2018.

Financial Figures in the Report

Per the report, AMD’s revenue for Q3 of 2018 rose to $1.65 billion, which is a decent 4 percent increase from $1.58 billion in Q3 of 2017. Although the revenue has risen on a year-over-year basis, it has slumped down from $1.76 billion in Q2 of 2018 – a decrease of roughly 6 percent.

Impressive figures can be observed with regard to the net income amassed by the company in the quarter, as it rose to $102 million in Q3 of 2018 compared to $61 million in Q3 of 2017.

Although, compared to Q2 of 2018, sales proceeds from the company’s Computing and Graphics business segment have taken a major downturn, which is pretty evident from the Q3 results.

On the bright side, AMD’s Computing and Graphics segment revenue witnessed an impressive increase of 12 percent on a year-over-year basis as it shot up to $938 million – courtesy of healthy sales of mobile products and Ryzen desktop.

That being said, AMD’s blockchain-related GPU sales didn’t fare too well in the quarter, which consequently dragged down the average selling price of GPUs.

Dr. Lisa Su, AMD president, and CEO said:

“Client and server processor sales increased significantly although graphics channel sales were lower in the quarter. Looking forward, we believe we are well positioned for further market share gains as we continue making significant progress towards our long-term financial targets.”

Has the Crypto Driven Growth Stalled?

Keen observers of the market will remember the euphoria the crypto industry went through during the famous bull run in late 2017, which witnessed the price of bitcoin (BTC) reach monumental price levels close to $20,000.

The optimistic market sentiment was visible in the first quarter results of 2018 for manufacturing companies like AMD and Samsung which posted impressive results.

Consequently, the shares of AMD also skyrocketed as the demand for cryptocurrency mining graphics cards witnessed a rapid surge.

However, of late crypto markets have been rather stable with the price of bitcoin hovering close to the $6500 mark. The steady quiet down has, in turn, impacted the demand for GPUs as the cryptocurrency mining boom has seemingly subsided to a large extent.

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