Thursday, March 29th 2018
AMD Corrects Analyst's Cryptomining Revenue Estimate in Defense of Its Share Value
AMD has gone on to publicly call attention to what it considers to be erroneous information put forward by Susquehanna analyst Christopher Roland. The analyst's report, which prompted the reclassification of AMD and NVIDIA's share targets - and investment ratings. Looking to stem what could translate to lower confidence from investors in its share outlook for the future, AMD has now gone on to clarify that mining revenue actually accounts for single-digit amounts entering the company's coffers, and not the 20% previously mentioned by the analyst.
AMD was dealt a worse hand than NVIDIA on Cristopher Rolland's analysis, since the perceived AMD exposition to a negative downturn on the GPU cryptocurrency mining market (kickstarted by the expected entrance in the market of Ethereum-specific ASICs) was double that of NVIDIA (20% on the former versus 10% on the latter). As such, the company has tried to remind customers, investors, and would-be investors that they appreciate the time and attention that investors continue to pay to Blockchain and cryptocurrency, but "(...) we [AMD] would also like to keep it in perspective with the multiple other growth opportunities ahead for AMD." You can read the AMD statement in full after the break, under the title "The View from Our Corner of the Street".
"Yesterday a report was published on AMD which hypothesized very high revenue for Ethereum-related GPU sales. As a reminder, on our Q4'17 earnings conference call we stated that the percentage of annual revenue related to Blockchain was approximately mid-single digit percentage in 2017. We had significant growth in the GPU business outside of Blockchain in Q4'17 as we ramped our Radeon Vega products, our GPU compute products, and our Apple business. We also spoke about strength across the rest of our business with AMD Ryzen and AMD EPYC product momentum. We have very compelling long-term drivers for the company including PCs, servers and graphics and our Q1 2018 financial guidance reflects that.
We appreciate the time and attention that investors continue to pay to Blockchain and cryptocurrency, but would also like to keep it in perspective with the multiple other growth opportunities ahead for AMD."
Source:
AMD News Releases
AMD was dealt a worse hand than NVIDIA on Cristopher Rolland's analysis, since the perceived AMD exposition to a negative downturn on the GPU cryptocurrency mining market (kickstarted by the expected entrance in the market of Ethereum-specific ASICs) was double that of NVIDIA (20% on the former versus 10% on the latter). As such, the company has tried to remind customers, investors, and would-be investors that they appreciate the time and attention that investors continue to pay to Blockchain and cryptocurrency, but "(...) we [AMD] would also like to keep it in perspective with the multiple other growth opportunities ahead for AMD." You can read the AMD statement in full after the break, under the title "The View from Our Corner of the Street".
We appreciate the time and attention that investors continue to pay to Blockchain and cryptocurrency, but would also like to keep it in perspective with the multiple other growth opportunities ahead for AMD."
32 Comments on AMD Corrects Analyst's Cryptomining Revenue Estimate in Defense of Its Share Value
At this time (and basically since the initial reference build) the complete package (chip, memory, interposer) is indicated to have costs in-line with the original projections. Stop peddling that old recycled crap.
Also, you obviously don't understand the business... AMD (Nvidia) negotiates with AIB's to set a price to supply chips/package, AMD can't just change price until that contact is fulfill. Normally they set price stronger for new releases and prices are designed (morally the more pedestrian silicone) to tapper back as the market is saturated and mature. AMD didn't make as this article indicates but pennies more on silicone production, but they can't jack it at will. That said, for Vega they would be smart as the can't control memory price (just like any AIB) probably pass along any increase of that in supplying that Vega package.
AMD is fine without mining.
Always sticking to a script: "Crypto is too small to waste time on planning for it", "Crypto is short-lived, so we don't want to risk", "Crypto is only a single-percentile part of our business and it won't affect our stock". They honestly think that RTG made almost a billion USD last quarter from empty store shelves and non-existing MI25 accelerators... :banghead:
But prices still skyrocket, dunno if it cause of reseller or ddr shortage, but that's it.
c mon, nobody will buy vega even at 500 if at the same price there is a gtx 1080...
1) first they said vega was delayed to produce enough stock & meet gamers demand...yet they failed to kepp nominal stock
before crypto took over later..
2)they again said amd was not affected by meltdown or spectre vulnerabilities.. then they silently said very little impact & so on..
3)everybody knows cryptocoin was the only thing that saved amd'a$$ in 2017 because raja scrwed everybody & ran over everyone with the failed vega train..in the GPU side.
well we just have to wait & see when cryptomining is no longer profitable..then lets see what AMD says then...
AMD could at least open a direct shop where sell gpu at msrp just like nvidia. But no....
So, for what i care, amd have to face the consecuences of their behavior
Let's not get off track here... A company can stretch a "goal" in conference call, but as to revenue (especially that already reported) to lie/mislead would place them in real legal jeopardy. So who do you believe these two "analyst" who are not bound (legally) by any B.S. they can float, or a company that could have the full weight of the SCC come down on them?
IMO it does seem there's a consorted effort to de-value AMD stock.
The bulk of AMD revenue is coming from CPU sales. The 2400G has a better GPU than the RX 550 for not much less than the RX 550. And it's a CPU too.Yup, the way the CTS-Labs thing rolled out showed that intention too.
Unlike Nvidia, AMD can't afford to screw over it's AIBs by selling directly. You do realize that the last company before Nvidia to try that went out of business because AIBs left them. Nvidia can do it because it has the GPU market by the balls.