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After a rough ride in 2018, Advanced Micro Devices (AMD) Inc. is set to rise from the ashes like a phoenix. While this is a good development, there still exist some concerns as to whether or not the sad lingering crypto winter will affect this new chapter.
Like other tech companies that are involved with crypto mining, AMD incurred a substantial amount of loss last year when crypto prices plunged and miners had to hang their boots. The third quarter report in October 2018 showed that the company had fallen a long way from its glorified position of the previous year. Although it has made some progress past the sour plunge during the beginning of the ongoing crypto winter, the company still has a lot of ground to cover to reclaim their former glorified chip maker position.
As expected of any company with a vision, AMD is set to rise from the ashes and write a different story in this new chapter – 2019. But crypto enthusiasts and investors are still concerned as to how the current crypto downtrend would affect their new moves. Looking back at how badly they were hit in 2018, I wouldn’t say that concerned investors and enthusiasts are being paranoid; the concerns are totally called for. The company, most definitely, need graphics card sales to make any meaningful advances in the industry and that can’t be promised as most crypto miners’ boots are still hanging on the ropes (perhaps literally).
Prior to their fourth-quarter earnings report scheduled for Tuesday January 29, AMD’s Chief Executive Officer, Lisa Su showed off a new gaming equipment – dubbed Radeon VII – at the just concluded CES confab in Las Vegas. She asserted that although she expected data-center GPU sales to be a huge part of the fourth quarter sales, she believes it might take more than just a quarter to get back to their former glorified chip maker position after such a rough crash in the industry last year.
Compared to the predicted earnings, I would say AMD isn’t doing badly. They have been able to leverage on Intel Corp’s (a rival chip maker) pain to accrue some gains for themselves. For the first time in what seemed like forever, AMD has an edge over Intel. This success is in great part due to the launch of its 7 nm chip-making process.
Looking into the future, Wall Street predicts revenue of $144 billion from AMD this year. Although this is a slight fall from what it was before the winter, it is yet a good way to go.
About 35 analysts have given their predictions and thoughts so far and a recurring fact is that AMD isn’t doing badly for a company that is coming from ashes. However, a majority of the analysts are yet concerned that the lingering crypto winter may have a huge effect on the company’s sales.