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Advanced Micro Devices Inc, a U.S-based chipmaker, reported its third quarter results on Wednesday, posting negligible sales of blockchain-related graphics processing units (GPU). The weak results were on account of shrinking demand from crypto miners for its GPUs, coupled with surplus inventory.
The semiconductor company said that its quarterly revenue rose 4 percent year-over-year to $1.65 billion. However, its revenue missed the Street estimate of $1.7 billion. AMD said that the lower-than-expected revenue was due to a dip in sales from its graphics business, which began in the second quarter.
The company still posted a 12 percent jump in sales from its Computing and Graphic segment to $938 million, boosted by strong sales of its Ryzen desktop and mobile products. However, sales of its blockchain-related GPUs were not significant, thereby bringing down the average selling price of the product.
“We delivered our fifth straight quarter of year-over-year revenue and net income growth driven largely by the accelerated adoption of our Ryzen, EPYC and datacenter graphics products. Client and server processor sales increased significantly although graphics channel sales were lower in the quarter,” said Lisa Su, AMD president and CEO.
AMD forecast that its revenue for the fourth quarter will be around $1.45 billion, an increase of eight percent year-over-year. The margin of its adjusted earnings will likely surge around 41 percent, propelled by the sales of Ryzen, EPYC and datacentre GPU processor sales.