BY CNA Team - October 25, 2018
AMD’s crypto-related sales continue to slide
Chipmakers continue to see lower sales of their products to crypto mining operators as the moribund markets drive down demand for mining rigs.
Sales of AMD’s graphics processing units (GPU) used in mining rigs continued to be affected by the tepid crypto market sentiment.
Bitcoin’s price, while stable, is still more than 50% down from the beginning of the year, leaving little incentive for people to mine the coin.
The Santa Clara, California-based chipmaker says GPU sales from the company’s blockchain-related businesses were negligible in the third quarter ended Sept 30.
The company noted that blockchain-related GPU sales were approximately high single digit percentage of total revenue in the same quarter of last year.
The average selling price for GPUs also decreased year-over-year and quarter-over-quarter on lower demand.
AMD posted a 67% jump in net income to US$102mil for the third quarter compared to the same quarter a year ago.
Revenue was up 4.43% to US$1.65bil driven by higher client revenue in the computing and graphics business segment.
Earnings per share came in at 9 US cents compared to the 6 US cents in the same quarter a year ago and 11 US cents in the second quarter.
Taiwan Semiconductor Manufacturing Co, which released third-quarter results last week, sees the company’s growth weighed down by the slump in demand for application-specific integrated circuit chips used by bitcoin miners.
The company counts Beijing-based Bitmain and Canaan Creative, both enroute to listings on the Hong Kong Stock Exchange, as major customers.
Nvidia, another chipmaker better known for GPU sales to the gaming market, also expects revenue for the rest of the year to be impacted by lower sales to the crypto mining market.
Image courtesy of AMD website.