Coin Price

$ 3,635.38
$ 30.93
$ 119.88
$ 53.60
$ 71.05
$ 45.52
$ 0.3217
$ 2.45
Quotes dellayed up to 2 minutes.
Posted on

Cryptocurrency Mining Causes AMD’s Revenues to Surge

0 Total shares

AMD a major chip maker revenue surges as cryptocurrency mining have resulted in a huge demand for its products. AMD and NVIDIA have had a booming year in terms of revenue due to the cryptocurrency mining. But they have noted that the future demand for new GPUs won’t be the same as cryptocurrencies are losing its value. AMD’s top priority is to put Wall Street investors mind at ease right now.  

AMD’s Position in the GPU Mining Industry

GPU manufacturers like AMD and NVIDIA have made huge profits in 2017 and early 2018 the reason for this growth is that lot of consumers are attempting to mine cryptocurrency and the demand for their graphics card has soared. AMD and NVIDIA both saw a positive fiscal year as their sales hit the roof in late 2017. In 2018 the craze for cryptocurrency has slowed down a bit.

Due to the highly volatile nature of cryptocurrencies, wall street investors were concerned regarding future success for AMD. Second-hand graphics cards may also flood the market which would drastically drop the demand for its GPUs.

Lisa Su the chief executive for AMD does not seem to be worried We don’t see a significant risk of secondhand GPUs coming into the market but do see a bit of volatility and that’s why we are putting into our forecast for the second quarter and the second half a little bit lower blockchain demand, but that’s more than made up for by the other new products and the way the new products are ramping in the business.”   

Cryptocurrency price rise could result in higher demand.

Even though cryptocurrencies did not have a great first quarter of 2018, things are turning around. Prices are going up again over the past week and Ethereum a GPU mined cryptocurrency has had a strong increase in the last 30 days. AMD would see its sales grow if this trend remains. Cryptocurrency mining-related sales made 10{7ac5c3bf57b95c89d20da1c585f68f2fe47644be0187dccece42864a092023b1} of AMD’s revenue during Q1 of 2018.

For AMD, the influx of used GPUs has not yet been materialized, but UBS has warned investors about such trend in this month. AMD company analysts have raised its revenue forecast for Q2 2018.

Daily updates