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BY CNA Team - July 26, 2018

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AMD expects lower revenue contribution from blockchain

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Advanced Micro Devices (AMD), the maker of the Ryzen chip, may have seen the best earnings results in seven years for the second-quarter ended June 30 (Q2), but prospects for the company’s crypto business is dimmer.

The company’s CEO Lisa Su expects revenue contribution from blockchain-related businesses to be lower in Q3 and the second-half of the year.

Blockchain contributed 6% to revenue in the second quarter, from 10% in the first quarter. Overall, the company posted US$116mil in net profit for Q2, a reversal from the US$42mil loss of the same quarter a year ago. Revenue jumped 53% to US$1.76bil.

On a segmental basis, the computing and graphics arm saw a 64% rise in revenue to US$1.09bil on strong sales of Radeon products and continued growth of Ryzen products.

However, on a quarter-on-quarter basis, the 3% decline in revenue was primarily related to lower sales of graphics processing units to the blockchain market.

“For Q3, we’re planning very little blockchain. So, we expected it to be down in the second half, but we’re planning very little in Q3,” Su says in a briefing with analysts on July 25.

“So, if you update that on a full-year basis for 2018, blockchain will be lower than what we had previously discussed in the last earnings call. So, I would say previously we said mid- to high-single-digits. I think this would more on the mid-single-side,” she adds.

Su is cautious of the outlook for blockchain contribution, saying that the company will continue to watch the market develop over the next couple of quarters.

Image courtesy of Advanced Micro Devices website.

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