Electronic Passion
Science & Technology
AMD Drops 24% After Low Revenue And Guidance, Crypto Crash
2018-10-29 09:01:08
AMD's third-quarter earnings report wasn't as promising as expected, which sent shares tumbling 24% in after-hours trading. AMD blamed the lower-than-expected revenue and guidance on a sharp downturn in the graphics market, which was largely fueled by the collapse of the cryptocurrency/blockchain market. The massive downturn in GPU sales left AMD's channel overstocked with inventory, which AMD CEO Lisa Su says could take 'several quarters' to correct. This comes after the company largely avoided the pitfalls of the crashing cryptocurrency market earlier this year. Overall, the company's $1.65B in revenue represented a 4% year-over-year (YoY) increase, but a 6% decline over the previous quarter.
AMD also predicted $1.45B in revenue next quarter, which falls short of consensus estimates of $1.6B.
AMD's Computing and Graphics (C&G) business raked in $938 in revenue during the quarter but missed the consensus $1.05 billion estimate. Su attributed the low revenue to a $150 million shortfall in GPU sales, while the company had only planned for a $50 million decline. Nvidia did launch its own graphics cards recently, but AMD attributed the slowdown "almost entirely" to the crypto/blockchain crash.