The demand for graphics cards from cryptocurrency miners may materially affect the business of California-based Advanced Micro Devices (AMD), which manufactures graphics cards. Such information includes annual report of the company for the Commission on securities and stock exchanges, published this week.
Note, since “Piccolomini” swept the world, AMD was in a very advantageous position — the company produces exactly what you need miners for the energy-intensive process of mining cryptocurrency. It is noteworthy that when AMD released the new AMD Vega 56, it was sold out in 5 minutes.
According to the document, representatives of the company admit the obvious benefit, noting that “the growth of cryptocurrencies and the emergence of new crypto-currencies has created demand for graphics cards in 2017”, but continue to approach this time with caution.
So, AMD leads the list of factors that can change the situation on the market of graphics chips, stressing the importance of market and regulatory risks that may reduce the number of cards purchased by the miners.
“The cryptocurrency market is unstable, and demand can change very quickly. For example, China and South Korea have recently imposed restrictions on trading cryptocurrencies. If we are not able to cope with the risks associated with falling demand for mining cryptocurrencies, it could have a material adverse effect on our business cards,” reads the company’s report.
Note the concern in relation to the likely changes of demand due to high volatility of cryptocurrencies, share and the main competitor AMD, the company NVIDIA.
We will remind, representatives of NVIDIA stated in February that, despite the fact that the contribution of mining cryptocurrency in their business is “difficult to assess”, the company remains focused on the production of equipment for gamers, given the high market volatility.
It is important to note the fact that at the end of last year, AMD has managed to consolidate its position in the market and a little closer to competitor. So, according to a report by research firm Jon Peddie Research, the company’s market share in the segment sales of graphics cards in the 4 quarter of last year increased by 6.5%, which Advanced Micro Devices “won” from NVIDIA.
In addition, in February it became known that AMD has joined the world’s largest blockchain-Ethereum Alliance Enterprise Alliance (EEA).