Advanced Micro Devices (AMD) published its quarterly earnings report this Wednesday reporting that sales of graphics cards (GPUs) to cryptocurrency miners fell during the second quarter.
AMD has reported second-quarter earnings of $116 million, or $0.11 per share, on revenue of $1.76 billion. This is up 53% from a year ago and non-GAAP earnings in the quarter were $0.14 per share. This represents the best earnings in 7 years. While the company reported $1.09 billion in revenue from its Computing and Graphics segment, which marks a jump of 64% year-over-year, AMD notes that quarter-over-quarter GPU sales have declined due primarily to lower demand from crypto miners.
In an earnings call, CEO Lisa Su added that approximately 6 percent of AMD's revenue came from selling to crypto-miners, down from 10 percent in the first quarter. Still, that quarterly decline was driven in part from lower revenue from what it called “the blockchain market” – that is, miners who use AMD's graphics cards for the energy-intensive mining process.
Graphics cards used by cryptocurrency miners accounted for about 6 percent AMD’s overall sales from 10 percent last quarter, the company’s CFO Devinder Kumar said on a post-earnings call. Further, the GPU maker expects this trend to continue, but it anticipates that sales of other products will offset the decline. The company expects the decline in GPU sales for crypto mining to continue, though it expects to offset the drop with sales from other products.
AMD isn’t the only company suffering from the dropping interest in GPUs for crypto mining. Nvidia (NVDA), AMD’s main GPU competitor, recently posted revenue of $289 in Q1 from crypto-related sales. However, the company anticipates that number to fall in the coming quarter.