According to a new report, “cryptocurrency mining driven sales for AMD’s graphics chips will decline by 50% next year or a $250 million decline in revenue.”
The article also showed that the demand for the companies game console chips will also decline by almost 6%. The stock dropped by almost 9% during the day on October 30th as reports came out detailing the company’s losses.
The company, which once was a large competitor to tech giant Intel, has struggled over the course of the past few years with a few glimpses of slight price rise during 2016 and 2017 respectively.
Looking at the SEC filings for the company, AMD lost around $2.8 billion through the course of 2012-2016. This is not surprising given the data mentioned above.
New data has come out however showing that the company may be able to make a comeback as the need for chips is coming back.
The computer chips that the company manufactures are made for uses in a variety of industries. One of the largest and growing uses for the chips is in the mining of cryptocurrency. Mining is a term given to those who use the high powered graphics computing chips to solve computational problems which are rewarded with cryptocurrency when solved. These computers need large amounts of computing power, thus the need for AMD comes into place.
As this market continues to grow, so will the need for the chips that they produce. Some have stated that the market on cryptocurrency will slow down, which may be one of the causes of the price fluctuations for the stock, but only time will tell what occurs to the price overall. The hopes are high that AMD can bounce back from this and begin an upward trend in the market.