AMD: ‘Blockchain-Related GPU Sales in Third Quarter Were Negligible’
On 24th October, the released financial results indicated that GPU revenues in the third quarter were negligible.
According to this reports, the blockchain investment did not produce the anticipated revenues for that period. AMD revealed that its revenues increased by $1.65 billion. This indicates a 4% increase from the previous figures. However, the figure did not surpass the anticipated value of $1.7 billion. The drop was as a result of lower graphic proceeds in the corporation’s computing and graphics department.
This segment also has experienced a yearly increase of up to 12 percent every year. The enterprise recorded a sales income of $938 million. This was because of the rising demand of Ryzen desk computer and mobile items. Blockchain associated GPU revenues performed dismally in the last quarter.
ADM CEO Reveals That They Might Exit The Bitcoin Market
AMD chief executive officer suggested that bitcoin performance was disappointing in the short-run. Therefore, it was advisable for AMD to avoid it. Despite these setbacks, she admitted that the technology was a noble idea as it provides a devolved network for users. She eventually advised individuals to embrace it because of its benefits.
At the beginning of this year, Su suggested that they would be better off shunning blockchain technology instead of waiting for disappointments. The company felt that it was prudent to concentrate on their main markets to earn better returns. The AMD Q4 this year shows that it anticipates revenue of $1.45 billion. This is an 8% increase from 2017 income. This was attributed to the increase of Ryzen and GPU sales. 2017 revenues stood at more than 1.3 billion.
The release of this report led to a decline in the AMD stock price. Nasdaq Reuters observed that it dropped by 9%. These assets surprised market participants as it fell beyond the normal fluctuations. The stock had never experienced such a big drop previously.
Though, financial experts disclosed that the stock's value was inflated by the cryptocurrency boom. Even if AMD stocks have experienced a price increase for some months, analysts predict that the stock value price will soon drop further.