Graphics card maker AMD introduced its “highest profitability in [seven] years” Tuesday, however expects its income to drop subsequent quarter due not less than partially to falling demand from cryptocurrency miners.

The corporate introduced in $1.42 billion in income final quarter, for a 2018 whole of $6.48 billion – properly above 2017’s whole of $5.25 billion, AMD mentioned in its Tuesday earnings release.

That mentioned, AMD nonetheless missed its goal income by some $20 million, and the discharge advised that its income from the crypto mining house has disappeared entirely.

“For the primary quarter of 2019, AMD expects income to be roughly $1.25 billion, plus or minus $50 million, a lower of roughly 12 % sequentially and 24 % year-over-year,” AMD acknowledged, occurring to elucidate:

“The sequential lower is anticipated to be primarily pushed by continued softness within the graphics channel and seasonality throughout the enterprise. The year-over-year lower is anticipated to be primarily pushed by decrease graphics gross sales on account of extra channel stock, the absence of blockchain-related GPU income and decrease reminiscence gross sales.”

The corporate has been warning that demand from the mining sector would possibly disappear for greater than a 12 months now. CEO Lisa Su mentioned way back to October 2017 that the corporate was “predicting that there might be some leveling-off of a number of the cryptocurrency demand.”

The corporate reiterated this prediction in its annual 10-K filing final 12 months when it defined that “the cryptocurrency market is unstable and demand may change rapidly.”

The corporate’s GPU gross sales would possibly undergo from drops on this demand, AMD mentioned on the time.

AMD’s subsequent earnings stories proved these predictions correct. Whereas GPU gross sales to cryptocurrency miners made up 10 percent of the corporate’s whole gross sales in that space in the course of the first quarter of 2018, the sector’s market share went on to drop over the subsequent a number of months.

AMD’s income from crypto miners was “negligible” in Q3 of 2018, the corporate introduced final October.

AMD picture by way of JHVEPhoto / Shutterstock

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