AMD, which is one of the most established semiconductor producer released its quarterly financial report on Wednesday, 24th October 2018. In the report, this manufacturer of Blockchain mining items revealed that the sales of blockchain related GPUs – Graphics Processing Unit became negligible in the third quarter.
The Increase In Revenues
In its 2018 third quarter financial report, the American semiconductor manufacturer clearly stated that it experienced a growth in its revenue with 4% year-over-year. The volume rose to $1.65 billion even though the figure still stayed under the $1.7 billion estimates. The decrease that was seen was greatly attributed to the general reduced graphics revenue that had been witnessed in the company’s department of Computing and Graphics business.
The effects of these began from the previous quarter. But despite all that, the Computing and Graphics sector of the company still witnessed a revenue increase of 12% year-over-year, making it rise to $938 million. This was primarily attributed to the huge sales of Ryzen desktop and the related mobile products. It was also further noted that the sales of Blockchain related Graphic Processing Units did not have a significant effect on the final revenue results recorded in the third quarter. In addition to that, the average selling price of these merchandises also greatly dropped in that particular quarter. But this was attributed to the reduced sales of the GPU channels.
The Importance Of The Technology To AMD’s Sales
It can be remembered that the Chief Executive Officer of AMD, Lisa Su had previously stated that the entire Blockchain technology appeared like some kind of distraction to the operations of her company. She pointed out that the effects were, however, experienced in a short duration. However, she did not fail to acknowledge and admit the benefits of the technology, especially in regards to her company. The fact that all these peer-to-peer transactions can be executed with great ease was a clear indication that the system is working right. The decentralized network is also another great thing that she thought the technology has achieved in.
In the first quarter of 2018, the CEO of AMD, Lisa Su recorded what she would refer to as better-than-expected growth in her organization. This prompted her to declare that they only emphasize their major markets rather than getting pinned down in the hype that was huge back then in the Blockchain market.
Looking at the recently-released report carefully, AMD has great expectations for the future. For the fourth quarter of this year, the company expects a huge growth in its revenues. As a matter of fact, AMD hopes that the revenue would be somewhere in the region of $1.45 billion. When this happens, it shall have grown at an estimated 8% growth year-on-year. In 2017’s fourth quarter, the revenue of this manufacturer of crypto-mining devices was at $1.34 billion. The adjusted earnings margin is expected to grow around 41% because of the sales of the datacenter GPU, EPYC, and Ryzen.