Chip maker Advanced Micro Devices (AMD) said Wednesday that sales of graphics cards (GPUs) to cryptocurrency miners fell during the second quarter.
The company published its quarterly earnings report late Wednesday afternoon, reporting a 3 percent quarter-to-quarter decline in revenue for its Computing and Graphics segment. The unit brought in $1.09 billion, which AMD said was a 64 percent jump year-over-year.
Still, that quarterly decline was driven in part from lower revenue from what it called "the blockchain market" – that is, miners who use AMD's graphics cards for the energy-intensive mining process.
AMD said in its report:
"Computing and Graphics segment revenue was $1.09 billion, up 64 percent year-over-year and down 3 percent quarter-over-quarter. Year-over-year revenue growth was driven by strong sales of Radeon products and continued growth of Ryzen products. The quarter-over-quarter decline was primarily related to lower revenue from GPU products in the blockchain market."
Further, the GPU maker expects this trend to continue, but it anticipates that sales of other products will offset the decline.
The company expects the decline in GPU sales for crypto mining to continue, though it expects to offset the drop with sales from other products.
"For the third quarter of 2018, AMD expects revenue to be approximately $1.7 billion, plus or minus $50 million, an increase of approximately 7 percent year-over-year, and non-GAAP gross margin to increase to approximately 38 percent, driven by the sales growth of Ryzen and EPYC products, partially offset by lower sales of GPU products in the blockchain market," AMD said.
The market made up some 10 percent of AMD's revenue in the first quarter, as previously reported by CoinDesk, though it is unclear what portion of the company's revenue came from crypto mining in the second quarter.
AMD image via michelmond / Shutterstock
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