Cryptocurrency mining won’t be a ‘long-term growth driver’: AMD

After the bell Tuesday, AMD released its quarterly earnings and took off the stock. A beat on revenue and earnings doubled with a higher than expected forecast for the rest of the year. The stock up of AMD’s about 8%.

Release of earning calls

The company’s release of earning calls, Lisa Su, CEO of AMD said that, “Relative to cryptocurrency, we have seen some elevated demand,” Su said. “But it’s important to say we didn’t have cryptocurrency in our forecast, and we’re not looking at it as a long-term growth driver. But we’ll certainly continue to watch the developments around the blockchain technologies as they go forward”.

Su adds that although of a enhance in graphics processing unit scales due to augmented demand from cryptocurrency miners the company would not have decisive on ignition market.

Cryptocurrencies like Ethereum and Bitcoin have implied by headline setting margins this year. Miners for those who built cryptocurrency computer networks that permit complex computing to confirm payments on the platforms.  It has been buying up lots of GPUs lately in an endeavor to make their computers faster and grasp a larger portion of the ornamental Cryptocurrencies.

“If you look at GPUs across the world, the catalogue in the channel is essentially moderately inclined. And so we’re working on refill that inventory”, said by Su. “Our priority, though really is on our core market which is gaming market”.

Nvidia & AMD

AMD’s biggest competitor is considered to be Nvidia. The company is developing a mining particular chip that directly addresses the enhancing market. For an unreleased Nvidia card for a product page says a mining specific chip which increases the hash rate by 36% comparatively with other purpose cards.

Related article: Nvidia to propel graphic cards designed for digital currency mining

Cryptocurrencies are particularly unpredictable with hundreds dollar moves in the price of Bitcoin the norm.  Generally, currencies are increasing in value but specifically could influence demand for GPUs as interest diminish with declines prices.

According to Su, that AMD is going moderately a bit to make sure that protest against any consequence as it allied to cryptocurrency”. It could be a reason that AMD is not developing specific mining card. He adds, “Ensuring that there is not calling the demand”.  This year AMD is up 34.66%.

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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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