AMD's profits are down 93% amidst soft demand for PCs and faltering cryptocurrency markets
AMD's profits are down 93% as crypto bro licks their wounds from their losses
All good things must come to an end. After a great run, AMD has been brought down to earth as consumers and businesses are buying fewer computers and cryptocurrency miners are looking for other forms of alternative investments.
AMD just announced its earnings report and the most startling figure is that third-quarter profits have fallen 93% compared to last year.
The company's profits in the third quarter were US$66 million on the back of US$5.6 billion in revenue.
A year ago, it was a far more impressive US$923 million on US$4.3 billion in revenue.
According to AMD, it missed its targets because of “the softening PC market and substantial inventory reduction actions across the PC supply chain." It also cites the accounting it's doing because of its US$50 billion acquisition of Xilinx earlier this year.
But it's not all gloom and doom. The company saw improvements in the data centre and gaming space. Sales of its gaming products were up 14% or US$1.6 billion likely because of strong sales of gaming consoles like the PlayStation 5 and Xbox Series S and X.
The company also reported strong sales of its EPYC server processors, which saw its data centre division reporting 45% higher revenue.
All eyes will now be on NVIDIA who will announce its earning reports in mid-November.