AMD Sees Q2 Dip in GPU Earnings to Crypto Miners
During the earnings call, Su said”we are expecting very little from blockchain” with regards to third-quarter earnings.
AMD said in its title:
Still, that quarterly decrease was driven in part from reduced earnings from what it called”the blockchain marketplace” — which is, miners who use AMD’s graphics cards for your energy-intensive mining process.
The company released its quarterly earnings report late Wednesday afternoon, reporting a 3 percent quarter-to-quarter decrease in earnings for its Computing and Graphics segment. The unit earned $1.09 billion, which AMD said was a 64 percent leap year-over-year. In an earnings forecast, CEO Lisa Su added that roughly 6 percent of AMD’s earnings came from selling into crypto-miners, down from 10% from the first quarter.
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“For the next quarter of 2018, AMD expects earnings to be approximately $1.7 billion, plus or minus $50 million, with an increase of roughly 7 percent year-over-year, and non-GAAP gross margin to increase to roughly 38 per cent, driven by the sales growth of Ryzen and EPYC products, partially offset by reduced sales of GPU products in the blockchain marketplace,” AMD said.
Further, even the GPU manufacturer expects that trend to continue, but it expects that sales of different products will offset the decrease.
Year-over-year earnings growth was driven by strong sales of Radeon products and continued growth of Ryzen solutions. The quarter-over-quarter decrease was primarily associated with reduced earnings from GPU products in the blockchain industry.”
“If you update that on a full-year basis, for 2018 blockchain is going to be lower than what we’d previously discussed in our last earnings forecast. Previously we mentioned mid-to-high only specimens… but we’ll watch that grow over the next two quarters,” she explained.
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The company expects the decrease in GPU sales for crypto mining to last, even although it expects to offset the drop with sales from different products.
Released at Wed, 25 Jul 2018 21:33:42 +0000