Prior to the release of the Advanced Micro Devices (AMD) report of Q4 of 2018, analysts say the company may still face "crypto hangover" problems, MarketWatch reports on Jan. 25. The company is expected to publish the report after the markets close next Tuesday.
Susquehanna's financial analyst Christopher Roland says AMD has managed to do well, but lower GPU prices can still cause problems. The popular AMD Radeon RX580 graphics processor, widely used by crypt-miners, was recently sold for $ 180, which is 67% less than the average price of about $ 550 in February 2018. Cowen analyst Matthew Ramsey said MarketWatch:
"After messing up Q3, which saw a significant impact from the challenges of selling GPUs in the near future, we believe the impact on inventories may slow to start the year and Q1 2019 slightly below consensus."
Following the release of third quarter results last year, AMD Chief Executive Officer Lisa Su said: "Sales of processors for customers and servers have increased significantly, although sales of graphics channels were lower in the quarter. We expect it may take a few quarters to get back to a normal channel. "
Last year's bear market also had an adverse effect on Taiwan-based GPU manufacturer Nvidia. The reduced profitability in the crypto-industry due to low prices has led to the disappearance of sales associated with cryptographic activity. In the fourth quarter of 2018, the company underwent a massive sale of its shares, cutting the stock price by 54%, making it the worst in the S & P 500.