The graphics card manufacturer AMD recorded a significant jump in sales in the third quarter of 2017, due to significant demand from cryptocurrency miners worldwide.
On Tuesday afternoon, the company reported revenue of $ 819 million from its computer and graphics division for the third quarter of 2017, a whopping 74 percent increase over the quarter of the year. Previous year.
While the company's graphics processing units (GPUs) have traditionally been used by video players, cryptocurrency enthusiasts quickly grab tools to extract ethereums and other parts. . In a possible glimpse of this situation, AMD stated that the turnover was "driven primarily" by the strong sales of its Radeon graphics processors and its Ryzen desktop processors – both used to crypto-mining.
In particular, AMD noted that sales of Vega 56 and Vega 64 GPUs increased significantly during the quarter. These are among the most sought after devices on the cryptocurrency market because of their high processing power compared to other products.
With stagnant growth in its other major business segments, booming GPU sales fueled an increase of 26% year-over-year to reach a total business turnover of 1.64 billion million dollars, making it the most profitable quarter since 2011.
But while the numbers are impressive, the company's shareholders have not been impressed by the third-quarter results.
AMD shares finally fell by 12%, from $ 14.25 at the close on Tuesday to $ 12.43 after the opening session. This coincides with investors' very cautious stance towards AMD's exposure to the volatile and potentially ephemeral market for cryptocurrency.
In addition, AMD was forecasting a decline in cryptocurrency revenues for the fourth quarter, pending fourth quarter revenue growth of 15% from the third quarter, at about 3%.
As CEO Lisa Su said on the winning call:
"As for headwinds … we also expect that there will be some leveling of cryptocurrency demand."
Overall, the message was mixed. Although she has issued bearish statements on the future of cryptocurrency mining with respect to AMD's profits, she has apparently left the door open to others. opportunities, even though they seemed less clear.
"There is also [a] a commercial blockchain component that we consider interesting and likely to continue in the medium term," she said.
Image credit: Gene Wang / Flickr