AMD Announces Positive Earnings With The Help Of Mining Hardware Sales
CEO Lisa Su of Advanced Micro Devices (AMD), a California-based semiconductor company, announced positive revenue and earnings growth for the first quarter of 2018. AMD’s favorable earnings report was boosted by the company’s sales of Ethereum (ETH) mining hardware. Cryptocurrency mining hardware sales accounted for 10% of the company’s first quarter revenue. During the earnings call on Wednesday AMD’s chief financial officer stated, “The strength in Radeon products was driven by both gaming and blockchain demand. We believe blockchain was approximately 10% of AMD revenue in [the first quarter of] 2018.” AMD had first quarter revenues of $1.65 billion, which is a 40% increase year over year.
Su admitted that the sales of mining hardware boosted revenues but stated that it’s a bit of a distraction in the short term. When asked about if blockchain technology was a reliable source of future growth Su said, “The long-term technology around blockchain is an important technology, and we’re spending a lot of time with some of the key influencers in this area, so I think it’ll be here for the next 3,4,5 years. Now what it does tomorrow vs. yesterday, I think that’s anyone’s guess.” After the positive earnings report AMD’s stock price jumped 11 percent and closed the week at $11.11.
Su spoke to an interviewer about the impact that mining hardware had on the company’s first quarter success saying,
We believe blockchain or mining was about approximately 10 percent of our revenue during the quarter. And the truth is there are a lot different factors in these estimates. We feel we have a very good idea of what people are using our products for. It’s a nice growth factor, but it’s certainly not the dominant growth factor in our story.
Putting an exact number on the impact that mining hardware has had one revenues is not easy though as it is difficult to tell whether the sales are from gamers or cryptocurrency miners.