Semiconductor company, Advanced Micro Devices Inc. (AMD), has revealed that its earnings and stock increased due to the growing demand of graphic chips used by cryptocurrency miners and gamers. CNBC reported that the revenue recorded in the current quarter has surpassed the expected amount. In fact, the company’s shares increased by over 9% in after-hours trading yesterday.
AMD’s Chief Financial Officer, Devinder Kumar, said, “Our financial progress in the first quarter is attributable to the ongoing strength of Radeon and Ryzen products as well as continued early contributions from our EPYC products.” He also mentioned that 10% of the overall revenue was due to cryptocurrency miners. While the company’s top priority are gamers, it still poses no restrictions to crypto customers. Over the last two years, AMD’s stock has increased by 250% and its graphics chips have become very well-known among Bitcoin and Ethereum miners.
In February 2018, AMD had to increase its graphics card production because Graphics Processing Unit (GPUs) were running out of stock. Tech company Nvidia, which also produces graphic cards, faced a similar situation. Earlier in January, GeForce graphics cards were sold out because of increased mining activities. The company even issued an announcement stating, “For NVIDIA, gamers come first. All activities related to our GeForce product line are targeted at our main audience.”
Nowadays companies have started focusing on creating Application Specific Integrated Circuit (ASIC) for cryptocurrency miners. Last month, it was revealed that Bitmain, the mining equipment provider, had already developed Ethereum-compatible ASIC mining chips. Intel also published a patent with plans to develop a Bitcoin mining hardware accelerator. The hardware was described as, “a processor core and a hardware accelerator coupled to the processor core, the hardware accelerator to mine digital currency.” Unlike other companies, Intel promised that solo miners would be able to benefit from this new technology.