AMD’s Computer Chip Manufacturer’s Quarterly Report Shows Declining Graphic Card Sales
AMD’s Quarterly Report Shows Negligible Blockchain-Related GPU Sales.
As per AMD’s quarterly economic report that was released yesterday, the firm revealed that its sales of “blockchain-related Graphic Processing Units (GPU’s)” were almost negligible during the third quarter of 2018.
While the American semiconductor firm said that its revenue stream on a whole had shot up by 4% over the course of the year, the company had still failed to touch its quarterly profit estimate of $1.7 Billion by a small margin ($0.05 Billion to be exact). To elaborate further on the matter, the overall decrease in revenue is largely being attributed to the declining demand for mining units (GPU’s) since the start of last quarter.
Even with all that, it is still commendable that AMD’s Computing and Graphic segment revenue rose by around 12% (for the year) to a respectable $938 million. This was mainly because of the strong sales numbers posted by AMD’s Ryzen desktop and mobile products. In the same vein, AMD’s Blockchain-related GPU sales were almost negligible due to lowered GPU channel sales.
More On The Matter
In the past, company CEO Lisa Su has said that she views blockchain as a “bit of a distraction” for AMD since the technology does not align with their core business model. However, she did admit that the technology had massive potential to disrupt a wide array of industrial domains.
In the first quarter of 2018, AMD’s profit margins were found to have increased quite exponentially— primarily due to the hype that had engulfed the crypto sector during the early part of the year. It was due to this reason, many financial analysts were claiming that AMD’s stock prices were “severely inflated” and that once the crypto-mining boom subsides, the firm’s overall revenue would dip substantially.
Lastly, the aforementioned report also states that the fourth quarter returns for the firm are expected to be around $1.45 billion, a figure which if achieved, will leave the company in an overall profit margin of 8% for the entire year. Not only that, it is also worth noting that as soon as AMD’s third-quarter report went live, the company’s stock prices slumped and dropped to a price point of $22.79— signifying a 9% value decrease.