AMD Worried About its Business if Cryptocurrency Miners Don’t Buy GPUs

Apparently, AMD, the company that develops computer processors, has disclosed that if cryptocurrency miners stop buying GPUs, the business may suffer an important impact. The information was revealed in a recent 10-K annual filing.

AMD Worried About a Drop in Crypto Miner Purchases

The rise in cryptocurrency prices and the attention that the media has given to them, has created an increased interest from individuals and enterprises. That has also lead to an increase in the purchases of graphic cards that can be used for cryptocurrency mining activities.

AMD has informed that this rise in the prices of cryptocurrencies has generated an important demand for GPUs in 2017. The company did not went further explaining specific numbers, but the figures are in line with past predictions from AMD. In the past, the company has suggested that in 2017, the GPU business was going to receive an important increase in demand.

The GPU business is also affected by the inherent volatility of the cryptocurrency market. A reduction in the prices of cryptocurrencies, or harder regulations in important countries could seriously affect the business.

The company has explained the situation as follows:

“The cryptocurrency market is unstable and demand could change quickly. For example, China and South Korea have recently instituted restrictions on cryptocurrency trading. If we are unable to manage the risks related to a decrease in the demand for cryptocurrency mining, our GPU business could be materially adversely affected.”

Nvidia, has also exposed its opinion about the cryptocurrency market, even when the company explained that just a small part of their sales goes to the cryptocurrency mining activity. Jen-Hsun Huang, chief executive officer of Nvidia, commented that cryptocurrencies are here to stay.

“This year, the world is starting to come to terms with the existence of crypto. It’s based on blockchain, and it’s very secure and very low overhead. I think there’s clearly real utility. It’s a real phenomenon, and so everyone is coming to terms with it. I’m not against the concept of virtual currency – it’s as real as virtual goods, and video games.” 

Images: Seeking Alpha and AMD

Source: Read Full Article

Leave a Reply