AMD announces highest revenues in 7 years despite crypto market decline
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The Q2 2018 earnings report from AMD is in, and it looks like the red team is still doing great in spite of the temporary crypto market decline. AMD claims that the CPU and GPU sales are still strong, however, the company usually merges CPU and GPU data in its Computing and Graphics segment, so the GPU data might be somewhat skewed. Year over year estimates for this particular segment show an outstanding 64% increase, but, compared to Q1 2018, revenue is down 3%. CEO Lisa Su explains that this occurred due to lower average selling price for the Ryzen 2000-series, which launched with lower prices compared to the first Ryzen CPUs from 2017. Once the Threadripper 2 CPUs get launched later this summer, the revenues should see substantial boosts.
According to the latest report, Q2 2018 drew in US$1.76 for the read team, while the net income increased by US$35 million over Q1 2018, amounting to US$166 million. It is important to note that these figures were recorded amid investor fears regarding the crypto market downfall. CEO Su did mention that GPU revenue related to crypto mining dropped from 10% to 6% in the last quarter. Meanwhile, the crypto market is showing rebound signs, and AMD forecasts a US$1.7 billion revenue estimate for Q3.
Lisa Su also stated that the 7 nm Radeon Instinct 7 nm GPUs are already shipping to AIB partners and should contribute to increased revenues for Q4. R&D investments are up 25% for this year, and the company is already experimenting with 5 nm technology which should be arriving some time in 2020.