Advanced Micro Devices (AMD), a U.S based computer chip maker has recently made it known that it has exceeded the benchmark and expectations set by the “financial experts” regarding its earnings.
2018 Was Rough for AMD and Most Chip Makers
The road to this achievement has not been an easy one for the chip maker. The company previously saw volatility in its performance and an overall challenging 2018 market conditions. Despite this, the firm posted an adjusted share price of $0.06, 1 cent above the target.
Since the news was made public, the price of AMD’s stock saw a 5 percent increase within hours. This is a clear sign that investors are happy and more are joining in on the ride.
“We delivered solid first quarter results with significant gross margin expansion as Ryzen and EPYC processor and datacenter GPU revenue more than doubled year-over-year,” president and CEO Dr Lisa Su commented.
“We look forward to the upcoming launches of our next-generation 7nm PC, gaming and datacenter products which we expect to drive further market share gains and financial growth.”
Just like most hardware makers, AMD’s 2018 was as challenging and unpredictable as it gets. This condition was acclimatised by the prolonged cryptocurrency bear market, which reduced demand for associated mining hardware components. The bear market led to a massive reduction in the demand for associated mining hardware components.
With the overall bear market still going on and price of crypto extremely low compared to their all-time highs in 2017, this hostile market condition is likely to persist for the chip makers.
Other chip manufacturers like Nvidia, which already posted a negative earning in Q1 2019 will get affected the most if the market does not recover with some significant margin.
Thankfully, the price of Bitcoin (BTC), has managed to stay above the $5000 mark for quite a while and several market indicators are pointing towards a bullish run.