Cryptocurrency Mining Demand Slowing Down or Not?

cryptocurrency mining

AMD which is one of the largest graphics card manufacturers reported a significant jump in sales because of considerable demand over the course of 2017.

The company reported on October 24 that they earned $819 million in revenues just from their computer and graphics division. It shows an increase of 74% as compared to the previous years third quarter.

The credit of this increase partly goes to cryptocurrency mining. AMD manufactures the GPU’s which are used for mining in high-end computers. AMD stated that the revenue is primarily from the sales of Radeon GPU and the Ryzen desktop processors. Both of these units are used for cryptocurrency mining. The sales skyrocketed mostly because of the advancement they have done as compared to the other manufacturers of the similar products.

Other sectors of the company are not showing the same growth as the GPU sector. It has been responsible for 26% increase in revenue on a year-on-year basis. And the current quarter from 2017 is the highest grossing since 2011.

The numbers look tremendous, but the shareholders don’t seem to be impressed as the shares of AMD dropped from $14.25 to $12.43 on October 24.

Lisa Su, the CEO of AMD issued a statement:

“in terms of the headwinds… we’re also predicting that there will be some leveling-off of some of the cryptocurrency demand.”

It seems that demand of cryptocurrency is rising so the stock prices may go up in the future.