AMD miners can crash the market of graphics cards

AMD miners can crash the market of graphics cards

This week, AMD said that the decline in demand for graphics card (GPU) on the part of the miners may have a “significant impact” on its business.

In its latest annual report (form 10-K), AMD notes that “the rise in the prices of cryptocurrencies and the emergence of new crypto-currencies contributed to the emergence of demand for our products in 2017”. AMD is one of the few companies that benefited from the cryptocurrency boom. Although the company has not provided specific numbers, but it is obvious that profit growth AMD has largely occurred because of rising demand from miners.

However, this situation can not last forever.

In its report, AMD has identified several factors that can affect the demand for GPUs from the miners, in particular market and regulatory risks that can lead to a decrease in demand from the miners:

The cryptocurrency market is volatile and demand can change quickly. For example, recently, China and South Korea have imposed restrictions on trade cryptocurrencies. If we are not able to cope with the risks associated with a decrease in demand from the miners, our business may suffer.

The view that the volatility of the cryptocurrency market can affect the demand of the miners is echoed by other market players, for example, the closest competitor, AMD, Nvidia.

In early February, Colette Kress, chief financial officer of Nvidia, said that “difficult to quantify”, a portion of the proceeds generated by the miners, adding that “the cryptocurrency market will remain volatile”.

However, the inclusion of cryptocurrency factor of the official report suggests that AMD is aware of the impact this industry for your business.

Let's Disqus