The leading graphics card manufacturer AMD is likely to face the “absence” of demand for cryptocurrency mining equipment in the first quarter of this year. In comparison, in Q1 2018, GPU sales accounted for 10% of the company’s total revenues.
AMD has recently announced its “highest profitability in [seven] years”. The company, nevertheless expects its revenue to drop next quarter due to decreasing demand from cryptocurrency miners.
Last year saw AMD’s revenues reaching a total of $6.48 billion, as compared to $5.28 billion in 2017.
Despite such a financial success, the company still missed its target revenue by $20 million. The analysts from AMD believe that the first quarter of 2018 will see the company’s revenue dropping by another 24%. The report on the matter suggests that this loss will be due to the “disappearance” of crypto mining.
“The year-over-year decrease is expected to be primarily driven by lower graphics sales due to excess channel inventory, the absence of blockchain-related GPU revenue and lower memory sales,” – the report reads.
This trend is not a surprise to the company. Back in October 2017, CEO Lisa Su said that AMD was “predicting that there will be some leveling-off of some of the cryptocurrency demand”.
It is worth noting that in February 2018, AMD increased the production of cryptocurrency mining devices.