AMD, which produces GPU hardware, published a financial report in which it spoke about the decline in sales of video cards and almost complete absence of demand for these products from cryptocurrency miners. Earlier, AMD admitted high risks associated with cryptocurrencies.

Bad prognosis

AMD published its financial report on the results of its fiscal 2018. The company's revenue for the year amounted to $6.48 billion, that is 23% higher than in 2017. Net profit reached $337 million against losses in 2017. Revenue for the IV quarter increased by 6% to $1.42 billion. This is the best result for AMD within the last seven years.

At the same time, the forecast for the company's revenues in the I quarter of 2019 was not so bright. According to AMD analysts, the company's revenue will be about $1.25 billion, that is 12% less than in the previous quarter, and 24% lower than in the I quarter of 2018.

“The sequential decrease is expected to be primarily driven by continued softness in the graphics channel and seasonality across the business.  The year-over-year decrease is expected to be primarily driven by lower graphics sales due to excess channel inventory, the absence of blockchain-related GPU revenue and lower memory sales.”

Crypto mining in decline

In 2017, AMD was able to win the largest share in the market of GPU for cryptocurrency mining. Then, more than 3 million video cards worth about $776 million were purchased for crypto mining, the Jon Peddie Research report said.

In 2018, it became clear that the demand for video cards would drop dramatically as the cryptocurrency market continued to decrease in the II half of 2018. According to the DigiTimes report, due to the increasing pressure on exchanged from regulators and cryptocurrency market fall, many individual miners and small mining farms left the market.