AMD, Nvidia 2H18 revenue growth may weaken on crypto mining chill
Major GPU chipmakers AMD and Nvidia are expected to see their revenue performance lose some growth momentum in the second half of 2018, as demand for crypto mining graphic cards remains on the decline amid sustained mining chill, according to industry sources.
Based on its financial statement released recently, AMD saw its second-quarter 2018 revenues surge 53% on year to US$1.76 billion, with net earnings of US$116 million or EPS of US$0.11 representing a seven-year high.
But AMD estimates its revenues for the third quarter at the range of US$1.65-1.75 billion, slightly lower than scored in the first quarter despite the traditional high season in the third quarter. Market sources expect AMD’s gross margins to decline along with significant decreases in orders, and its overall profit performance for the second half of the year can hardly pick up significantly, especially given the unclear timetable concerning the launch of its next-generation GPU chips.
Nevertheless, AMD’s overall profits for the whole 2018 are expected to see sharp increases, and the growth will be driven by the firm’s increasing sales of Rzyen series processors for desktops and notebooks and EPYC server processors, as well as Apple’s adoption of AMD GPUs for its new iMac Pro and 15-inch Mackbook Pro devices. In addition, AMD is slated to launch 12nm “Zen+” second-generation Ryzen Threadripper CPU, featuring an industry-leading 32-cores and 64-threads of HEDT computing power in the third quarter of 2018, and the firm’s new generation 7nm Radeon “Vega” architecture-based GPU for servers and workstations will also be released later in 2018.