AMD, a graphics card maker out of Sunnyvale, California reported considerable sales jump in their third quarter due to a significant demand for cryptocurrency mining devices.
The company released their earnings and reported they made $819 million in their computing and graphics division alone. This is a 74 percent increase from 2016’s third-quarter revenue.
Graphics Processing Units (GPUs) have been primarily used by avid video gamers but recently hardcore cryptocurrency miners have been seizing up them up for mining. AMD states the increase in revenue resulted from strong sales of its Ryzen and Radeon GPUs processors, both of which are used for cryptocurrency mining.
Compared to other products, Vega 56 and Vega 64 are the most popular among devices as their processing power far surpasses any on the current market. AMD also noted an increase in their sales of these products this quarter.
The company has seen static growth in its other core business sectors, but with the current surging sales in their GPU’s, it fueled a 26 percent boost in total revenue to 1.64 billion, year-over-year. This growth made it the company’s high-grossing quarter since the year 2011.
Although, the company’s shareholders aren’t very impressed with these results.
AMD shares dropped to 12 percent, at $14.25 to close out the end of the month. With AMD closely linked to the volatile and potentially fleeting crypto market, investors have taken a precautionary role when it comes to investing in AMD.
Also, AMD’s fourth quarter projected forecast showed its cryptocurrency revenue decreasing by 15 percent, give or take 3 percent.
CEO Lisa Su said on their earnings call, “In terms of the headwinds … we’re also predicting that there will be some leveling-off of some of the cryptocurrency demand.”
Overall the call left mixed emotions, while she issued bearish statements about cryptocurrency mining as it relates to her company’s earnings, she also left the door open for other opportunities, except those seemed less understandable.
“There’s also [a] commercial blockchain component that we believe is interesting and likely to continue into the medium term,” she said.
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