American semiconductor company AMD revealed in its quarterly financial results report that the revenue rose to $1.65 Bln, up 4% year-over-year, though the figure is below estimations of $1.7 Bln. The decrease is attributed to overall lower graphic revenue within the company’s Computing and Graphic business section comparative to the last quarter.
However, AMD’s Computing and Graphic section revenue saw a 12% hike year-over-year up to $938 Mln primarily because of the uphold sales of Ryzen desktop and mobile products. Blockchain-related GPU sales didn’t played very well within the third quarter. The avg. selling price of GPUs additionally fell due to lower GPU channel sales.
Recently, AMD chief executive officer ’Lisa Su’ aforementioned that blockchain technology was a little bit of a distraction, within the short term for the company’s business. She admitted the importance of the technology but, stating that “the plan you’ll be able to do of these peer-to-peer transactions, a decentralized network, it’s an efficient technology.”
In the Q1 of 2018, Su stated better-than-expected growth in her company, additionally stating that instead of getting caught within the hype surrounding the blockchain technology, they’d target on their core markets.
In line with the AMD report, for the Q4 of 2018 AMD expects its revenue to be around $1.45 Bln, which is up roughly by 8% year-on-year; within the Q4 of 2017, revenue was reportedly $1.34 Bln. The margin of adjusted earnings is anticipated to extend around 41% as the sales of Ryzen, EPYC, and datacenter GPU processor grows.
After the report was published today, the AMD stock price fell sharply, closing down 9% to $22.79 USD, per NASDAQ. Reuters attributes this sudden fall to lesser than expected estimates for the Q4 revenue.
Analysts have antecedently warned that AMD’s stock price was inflated by the crypto mining boom. Although AMD shares had seen substantial growth within the past few months, the high share prices might not last long ought to crypto mining quiet down, the analysts aforementioned.