Topic: [2018-10-31]AMD: ‘Blockchain-Related GPU Sales in Third Quarter Were Negligible’ (Read 122 times)

Why would we need governments? They hype is dying down, no one is using tokens or blockchain services, so mining is not very profitable. AMD made the right call last year to not get involved with crypto mining, they would just lose money by now, and they are simply not in position to take big risks right now.

It seems this thing is becoming a problem gradually. I mean when people try to implement blockchain related services, patronisation becomes questionable. I also read another article somewhere in the middle of the year talking about how Brazzers are saying people aren't utilising their crypto subscription services ti the website.

We really need governments to clear things up so that we can all see te way forward. Nevertheless, this is a great technology we're experiencing.

In its quarterly financial results report published Oct. 24, semiconductor manufacturer AMD reveals that “blockchain-related graphics processing unit (GPU) sales in the third quarter were negligible.”

American semiconductor company AMD stated in its third quarter 2018 financial report that revenue rose to $1.65 billion, up 4 percent year-over-year, although the figure is below estimates of $1.7 billion. The decrease is attributed to overall lower graphic revenue in the company’s Computing and Graphic business segment since last quarter.

Nevertheless, AMD’s Computing and Graphic segment revenue saw a 12 percent increase year-over-year up to $938 million primarily due to strong sales of Ryzen desktop and mobile products. Blockchain-related GPU sales were not significant in the third quarter. The average selling price of GPUs also decreased due to lower GPU channel sales.

Previously, AMD CEO Lisa Su said that blockchain technology was “a bit of a distraction, in the short term” for AMD’s business. She admitted the importance of the technology however, stating that “the idea you can do all these peer-to-peer transactions, a decentralized network, it’s a good technology.”

In the first quarter of 2018, Su noted better-than-expected growth in her company, further stating that rather than getting caught up in the hype surrounding blockchain, they would focus on their core markets.

Per the AMD report, for the fourth quarter of 2018 AMD expects revenue to be around $1.45 billion, up approximately eight percent year-on-year; in the fourth quarter of 2017, revenue was reportedly $1.34 billion. The margin of adjusted earnings is expected to increase around 41 percent due to the sales growth of Ryzen, EPYC, and datacenter GPU processor sales.

After the report was release today, the AMD stock price slumped, closing down 9 percent to $22.79, according to Nasdaq. Reuters  attributes the drop in share price to lower than expected estimates for fourth quarter revenue.

Analysts have previously warned that AMD’s stock price was inflated by the cryptocurrency mining boom. Though AMD shares had seen substantial growth in the past months, the high share price may not last long should crypto mining quiet down, the analysts said.

Source: https://cointelegraph.com/news/amd-blockchain-related-gpu-sales-in-third-quarter-were-negligible