Manufacturers of electronic devices continue to break records on earnings results for the first quarter of this year. As explained in the companies, this growth is due to growing demand for mining hardware.
According to one of the largest manufacturers of graphics processors AMD, the demand for devices for cryptocurrency mining accounted for about 10% of the company’s profit in the first quarter of this year.
«The high demand for products Radeon due to the interest of both gamers and industry of the blockchain. We believe that the blockchain is community accounted for about 10% of AMD revenue in the first quarter of 2018,» said Wednesday chief financial officer Devinder Kumar (Devinder Kumar) during a conference call on the financial activities of the company. It happened shortly after AMD announced that first-quarter profit of the company amounted to $ 65 billion, which is 40% more compared to the same period last year.
Kumar noted that the overall demand of gamers and miners contributed to the sales growth of 95% on the market of graphics processors and computing compared with the same period last year. However, Kumar notes that the company expects «a moderate decline of revenues due to the miners». Overall, AMD expects that at least 10% of income in 2018 would be generated in the demand from cryptocurrency miners.
«Based on the strength of our business momentum for the year, we expect that by the end of 2018, revenue will increase by approximately 20% due to the launch of our new products. Income from industry of the blockchain in the share of total profits for the year 2018 have to be medium to high,» he said during a conference call.
CEO Lisa su (Lisa Su) is optimistic about the prospects for AMD in the sector of the blockchain. She said:
«I really think that the infrastructure of the blockchain it will still be there. There are many currencies. There are many applications that use the technology of the blockchain. We don’t see significant risk in the spread of used GPUs on the market. Today, users buy a GPU for different purposes – both commercial and consumer. This is due to the large number of crypto-currencies and increased interest in him.»
«Cards don’t necessarily buy only for mining,» continued su. «I think most people compare this stage of development of the blockchain that was a couple of years ago, but I think that there are some important differences. The first of these is the presence of multiple currencies and multiple applications that are actively used around the world. Miners are switching from one currency to another depending on market situation».
According to su it was hard to say whether retail sales to increase at the expense of gamers or for the account of the miners. However, she has no doubt that sales will continue to grow.
«The wide distribution of the blockchain and interest in technology by our customers give us the confidence,» she said.
Record profits for Samsung
Samsung Electronics reported a 58% increase in operating profit for the first quarter of 2018. According to the company this growth is due to high demand for mining chips.
This was stated by Vice-President of Samsung’s investor relations, And Robert M. (Robert M. Yi) during a conference call on the financial activities of the company. He said that the net profit for the most part responsible division of the company for the production of semiconductors – that it played a significant role in establishing a new record operating profit for the quarter, which amounted to 15.6 trillion Korean won ($14 billion).
Robert explained this phenomenal growth:
«In the semiconductor business profit increased significantly over last year, due to favorable market conditions due to the high demand for graphics processors, as well as the chips used in the latest models of smartphones and cryptocurrency mining».
While Samsung did not disclose the exact figures of income of the company for the production of chips for an additional profit can be responsible a new line of processors for mining processes 11 nm and 8 nm, designed to meet the needs of the market. In February, the company confirmed that it starts producing ASIC chips for mining.
Samsung and AMD is not the only company, snatch a piece of the cryptocurrency pie. A few days ago TSMC, the world’s largest independent semiconductor manufacturer, announced
about increasing profits in the first quarter due to the production of mining chips.