Blockchain technology’s relationship with GPU sales on rocky waters, AMD quarterly report
On 25th July, Advanced Micro Devices [AMD] released its second quarterly report which beat financial expectations and sent the company stocks on an upward trajectory. The chipmaker’s market expectation beat was owed to its boost in product development. AMD focused more on the micro and nano chip industry coupled with the company’s indulgence in the cryptocurrency world, which actually took a hit this time around.
The report showed that AMD had suffered a 3% decline for its Computing and Graphics department [CaG] compared to the first quarter when AMD’s shares gained 2.3% to close at 12.94% on the final day of the first quarter. The company revealed that the total revenue bought in by the CaG department amounted to $1.09 billion which is a 64% jump compared to AMD’s previous year over year analysis. The only decline in the CaG department was seen in the sales to cryptocurrency miners which bought in only 6% of the total earning, a stark contrast to Q1’s 10%.
AMD’s focus into the cryptocurrency world intensified post the massive surge that cryptocurrencies enjoyed towards the end of 2017. AMD’s sales to miners majorly include selling the AMD Graphics Processing Units [GPU] that enables them to mine cryptocurrencies.
The company in the report stated:
“Year-over-year revenue growth was driven by strong sales of Radeon products and continued growth of Ryzen products. The quarter-over-quarter decline was primarily related to lower revenue from GPU products in the blockchain market.”
Earlier in the year, AMD’s officials had stated that the decline in the chip sales to miners was actually healthy. Lisa SU, the CEO of AMD had actually predicted the sales towards miners to go down by the end of Q2 and that is exactly what has happened.
Although cryptocurrency mining is being is being scrutinized by different sectors, with China being a prime example for banning mining, applications like Honeyminer are still trying to change the mining game by providing faster and more accessible processing systems.