10% of Q1 Revenue: Cryptocurrency Mining Boosts AMD Profits

Advanced Micro Devices’ first-quarter earnings results were buoyed by cryptocurrency mining revenue, but the chipmaker warned the volatility is getting in the way.

AMD in Q1 generated a higher percentage of its revenue from sales of its graphics chips that are used to power computers in the cryptocurrency mining process for digital currencies like bitcoin and ethereum.

The company, however, is bracing for a “modest decline” in blockchain-fueled revenue in the second quarter even as bitcoin has turned a corner. Nonetheless, AMD CEO Lisa Su expects mining demand will be around for the long term.

“I do think the blockchain infrastructure is here to stay. I think there are numerous currencies. There are numerous applications that are using the blockchain technology,” said Su on the earnings call.

The Results

AMD’s Q1 computing and graphics revenue came in at $1.12 billion, soaring 95% versus last year in the same quarter. The company attributes this to “strong sales of both Radeon and Ryzen products.”

“The strength in Radeon products was driven by both gaming and blockchain demand. We believe blockchain was approximately 10% of AMD revenue in Q1 2018,” said AMD’s CFO Devinder Kumar on the earnings call.

AMD’s Su described on the call how sales “outperformed seasonality,” thanks in large part to rising blockchain demand tied to the company’s Radeon Vega and 500 series graphics cards sales.

AMD’s stock has soared more than 250% in the past two years amid rising demand for its graphics processors…

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