American semiconductor manufacturer AMD released its financial report for the third quarter. The company is disappointed by the decline in demand for cryptocurrency miners and the fall in the value of markets.
According to the company, its quarterly revenue rose just 4% year-over-year to $1.65 billion. This did not meet the expectations of company representatives, who expected to receive $1.7 billion. Such indicators are associated with a decrease in demand for GPUs in the field of mining.
In the report, the company indicated that the decline in revenue from the sale of CPU processors was partially offset by increased sales of Ryzen processors.
Summit Insights Group analyst Kinngai Chan told Reuters:
The company's mistake was its focus on GPUs and an unjustifiably risky bet on the cryptocurrency market. It also doesn't have a competitive product line for the PC gaming market.
AMD CEO Lisa Su said the company expects fourth-quarter profit of about $1.45 billion, although analysts expect it to be $1.6 billion. Be that as it may, the company's earnings will grow by about 8% for the year.
As usual, the sight of red has investors going into bearish mode.
According to NASDAQ, the company's stock price has fallen 27% since the beginning of the month. The release of the financial report caused the price to fall another 9.17% in one day.
The drop in demand for may be due to the bearish trend in the cryptocurrency market in 2018, but another factor is that many have switched from GPU to ASIC miners, which are much more efficient. Most of the largest mining pools use ASIC miners like the flagship model Bitmain Antminer S9.
According to ethereumworldnews.com
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