A report out today shows the immense profits made by hardware firm, AMD in the first quarter of 2018.
According to CCN, as much as 10% of AMD’s revenue has been generated through the sale of mining hardware, providing another example of how cryptocurrency can benefit more than just its investors.
According to CEO of AMD, Lisa Su:
“I do think the blockchain infrastructure is here to stay. I think there are numerous currencies. There are numerous applications that are using the blockchain technology.”
AMD’s CFO, Devinder Kumar extends this sentiment:
“The strength in Radeon products was driven by both gaming and blockchain demand. We believe blockchain was approximately 10% of AMD revenue in Q1 2018.”
We must also note that stocks in AMD have risen substantially, this is most likely as a result of their increased mining hardware production.
So what does this mean?
Well, as I have mentioned it’s great for the industry because it goes to show that more than just investors are benefiting from cryptocurrencies. Most importantly though, it suggests that more and more people are getting into cryptocurrency mining. This, is mostly likely due to increased media exposure, overall though, it’s good news because as the industry expands, so will the industries aims and objectives. With more and more people involved in mining, more and more people will benefit from both cryptocurrency and blockchain technology.
According to CCN, Su has discussed some elements that she believes have contributed to AMD’s success within the mining industry of late, stating that:
“AMD’s Su pointed out that there was a “lot of discussion” surrounding blockchain and cryptocurrency mining, noting that the management team “spends time” with their customers, including commercial miners. Su described how AMD has greater “visibility” into the demand for the commercial miners versus individual cryptocurrency miners, the latter of whom has a shared use-case between gaming and mining. Su pointed to the volatility inherent in this market as the reason for the more modest expectations for blockchain demand in the second quarter.”
You can see the full CCN article for yourself, here- https://www.ccn.com/amd-ceo-blockchain-is-here-to-stay/
What do we think?
As I have mentioned, overall this is beneficial. Okay, so AMD’s profits won’t really directly influence the markets, perhaps if they make further profit in the second quarter of 2018 we may see the price of some mining hardware decrease. Of course, as AMD benefit from this, there profits will turn into further technological enhancement, therefore we believe as the mining industry grows through these sorts of developments, the cryptocurrency industry on the whole will only follow suit. We scratch AMD’s back, they scratch ours.
Featured Image Original Source: Pixabay