AMD's sales of mining GPUs are now negligible, shares tumble 25%

AMD released its Q3 earnings yesterday, which sent its stock price down by 25% in after-hours trading. The reported revenues were below analysts' estimates mainly because of the decreasing demand for GPUs. In its financial report, AMD says that "blockchain-related GPU sales in the third quarter were negligible" compared to "approximately high single digit percentage of total AMD revenue" in Q3 of 2017. In Q4 of 2017, blockchain-related GPU sales were "approximately low double-digit"percentage of total AMD revenue. Kinngai Chan, Summit Insights Group analyst, told Reuters that "AMD had too high an exposure to the crypto-currency market."

AMD isn't the only chip producer feeling the cryptocurrency crash. Nvidia announced their Q2 results in August and also missed the estimates. Revenues from Nvidia's miners were $289 million in Q1, which was about 10% of total revenues. The forecast for revenues coming from miners was $100 million but actually ended up being mere $18 million. Nvidia's CFO Colette Kress told WSJ: "Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward."