Since the companies worldwide coming with their quarterly results that reflect not only numbers, however, they show that how much value they have added to their stakeholders. In a recent quarterly financial result of AMD, an American semiconductor company that presented its third-quarter 2018 numbers in which revenue rose to $1.65 billion, grew by 4 percent year-over-year basis, although the figure is below the budgeted estimate of $1.7 billion as per the quarterly financial reports of the company published on 24th October.
Amid this, the company has disclosed in its statement saying that “blockchain related graphics processing unit (GPU) sales in the third quarter were negligible.” However, the decrease in the budgeted estimate of $1.7 billion was due to overall lower graphics sales in the company’s Computing and Graphics arm since last quarter.
Amid this, AMD’s Computing and Graphics segment revenue grew by 12 percent increase on a year-over-year basis to $938 million attributed to strong demand of Ryzen desktop and mobile products collectively.
However, Blockchain based GPU sales were not in line with the company’s expectation in the third quarter. The average selling price of GPUs declined because of lower GPU channel sales.
Lisa Su, CEO of AMD said in her statement that “blockchain technology was a bit of a distraction, in the short term” for AMD’s business.” She further said that “the idea you can do all these peer-to-peer transactions, a decentralized network, it’s a good technology.”
Su excitedly said to have received a better-than-expected growth in her company in the first quarter of 2018. Amid this, she further elaborated the new age tech’s value-add in the company by stating that “rather than getting caught up in the hype surrounding blockchain, the company would focus on their core markets.”
Amid this, the AMD financial report, for the fourth quarter of 2018, the company expected the revenue almost $1.45 billion, growing by approximately eight percent year-on-year basis, whereas in the fourth quarter of 2017, revenue was $1.34 billion. Needless to say that the margin of adjusted earnings is expected to increase around 41 percent attributable to sales growth of Ryzen, EPYC and datacenter GPU processor sales altogether.
Based on the recent financial report, the AMD stock price declined by 9 percent to $22.79 as reported by the NASDAQ stock exchange. With this, the drop in share price to lower than budgeted estimates for fourth-quarter revenue.
Further speaking to the subject matter, Analysts criticized that AMD’s stock price was artificially raised by using the buzzword – Cryptocurrency mining. However, AMD shares have observed the significant growth in the past couple of months.