AMD’s quarterly revenue forecast cause its share price to plummet as Crypto Mining Falls
AMD, a U.S. chip manufacturer, released its 3rd quarter results, the drop in overall cryptocurrency mining and the falling cryptocurrency markets have disappointed the company’s financial figures.
The chip manufacturers quarterly revenue was up by 4% from the previous year to $1.65 billion for the 3rd quarter. However, the company expected a revenue of $1.7 billion. The decline for its graphics processing units which were are used mine cryptocurrencies was one of the reasons for the decline in revenue.
In a report, published by the company which stated that the sales for the Blockchain-related GPU were a negligible part of the company overall sales for the 3rd quarter. AMD and its rival Nvidia made huge profits with the surge in cryptocurrency markets. The price for the GPU’s surged in late 2017 along with the price of cryptocurrency as the supply reduced.
Lisa Su, the CEO of AMD estimated a revenue of $1.45 billion while analysts forecasted a revenue of $1.6 billion. However, the estimated revenue would be an 8 percent rise from the previous year.
The company’s stock has dropped by 27% from the beginning of this month and the recent revenue report release has caused the share price to fall by 9.17% on the day.