Ahead of the release of AMD’s Q4 2018 report, some analysts predict that a “crypto hangover” could still be affecting the company’s revenues.
Ahead of the release of Advanced Micro Devices’ (AMD) fourth quarter (Q4) report for 2018, analysts state that the company could still be facing problems due to a “crypto hangover,” business news site MarketWatch reported on Jan. 25. The firm is expected to release the report after markets close next Tuesday.
Susquehanna financial analyst Christopher Rolland reportedly said that AMD has managed expectations well, but lower retail prices for graphics processing units (GPU) could still cause problems. AMD’s popular Radeon RX580 GPU, which has been widely used by crypto miners, was recently being sold for $180, down 67 percent from a peak average price around $550 in February 2018. Cowen analyst Matthew Ramsay told MarketWatch:
“Following a messy Q3 that saw a material impact from near-term GPU channel sell-in challenges, we believe inventory impacts could linger to start the year, and model Q1 2019 slightly below consensus.”
Following the release of Q3 results last year, AMD CEO Lisa Su said, “Client and server processor sales increased significantly although graphics channel sales were lower in the quarter. We are expecting that it might take a couple quarters to completely get back to a normal channel.”
Last year’s bear market also had an adverse effect on Taiwan-based GPU producer Nvidia. Decreased profitability in the crypto mining industry due to low prices led to a disappearance in crypto-related sales. In Q4 2018, the firm experienced a massive sell-off of its shares, cutting the stock price by 54 percent and making it the worst performer in the S&P 500.
Source: Cointelegraph https://cointelegraph.com/