Crypto Mining-Related Sales Fell In Q2 According To AMD
Crypto-mining related sales fell sharply this quarter, at least according AMD. The bear market of the last 7 months is largely responsible for this trend.
After all, miners are unlikely to purchase new chips to mine with if they believe there will be a long-term downtrend in crypto prices. Seven months is a long time, and it clearly had an impact.
But AMD itself is not complaining. They have faced customer irritation before when gamers (who they primarily market the GPU’s to that tend to be bought by crypto miners) complain of not being able to find any GPU’s available at all. If they are, sometimes the prices can be 3x standard retail prices.
These past bottlenecks are primarily due to the fact that they have shown reluctance to embrace producing GPU’s specifically for the crypto market thus far.
According to AMD CEO Dr. Lisa Su, “We had an outstanding second quarter with strong revenue growth, margin expansion and our highest quarterly net income in seven years.
Most importantly, we believe our long-term technology bets position us very well for the future. We are confident that with the continued execution of our product roadmaps, we are on an excellent trajectory to drive market share gains and profitable growth.”
Specifically, overall AMD Revenue was $1.76 billion, up a whopping 53 percent year-over-year and 7 percent quarter-over-quarter. This increase was driven by higher revenue in the embedded computing and other more business-focused categories.
AMD also made sure to include some highlights of the quarters biggest achievements.
Specifically, at Computex 2018, AMD showcased the next-generation of their CPU and GPU products lines.
This also included the first public demonstrations of: The 12nm “Zen+”-based 2nd Generation Ryzen ThreadripperTM CPU, which are scheduled to launch in Q3 2018 as well as the 7nm Radeon “Vega” architecture-based GPU for servers and workstations that is planned to launch later in 2018.
Despite the overall bear crypto market of the past 7 months, cryptocurrency mining operators (both small and industrial) will likely continue to make up an increasingly larger percentage of AMD’s sales.
With the timid bears of Q2 making way for the strident and chargingbulls of Q3 in the greater crypto markets (Bitcoin is at nearly $8200 at the time of writing after all), the demand for mining chips made by AMD will only increase.
This will be especially true if miners think there’s an increasingly larger profit to be made. In summation, the future sales of AMD GPU’s are increasingly going to be tied to the performance of the crypto markets.
Featured image courtesy of Shutterstock.