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AMD Profit up 74% on Bitcoin Mining.......CEO Sees low currency Mining Demands!

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One of the companies that took advantage of the booming cryptocurrency market , AMD has reported a significant sales rise for its third quarter results, though the outlook for the foerth quarter is looking bearish.

The Graphics card maker AMD reported that its sales jump in the third quarter of 2017 was as a result of significant demand from the world's cryptocurrency miners.  On its Tuesday afternoon earnings call, the company reported $819 million in revenues from its computing and graphics division for the third quarter of 2017, a whopping 74 percent increase over the prior year's quarter.

While the company's graphics processing units (GPUs) have been traditionally used by video gamers, cryptocurrency enthusiasts are quickly snatching up the tools for mining ethereum and other coins. In a possible nod to that circumstance, AMD said the revenue was "primarily driven" by strong sales of its Radeon GPUs and Ryzen desktop processors – both of which are employed for crypto-mining.

In particular, AMD noted that sales of the Vega 56 and Vega 64 GPUs ramped up significantly during the quarter. These are among the most highly sought-after devices in the cryptocurrency market because of their significant processing power compared to other products.

With stagnant growth in its other core business segments, the surging GPU sales fueled a 26 percent year-over-year increase to a total revenue of $1.64 billion, making it the company’s highest-grossing quarter since 2011.

But while the numbers are eye-popping, the company's shareholders weren't impressed with the Q3 results.  AMD shares dropped 12 percent, from $14.25 at closing on Tuesday to as low as $12.43 in after hours trading, signalling the displeasure of the investment community with AMD's romance with the volatile and potentially unpredictable cryptocurrency market.

However, the company has forecasted a decrease in cryptocurrency-related revenues for the fourth quarter, expecting its fourth quarter revenues to decrease by 15 percent from the third quarter, give or take three percent.  As CEO Lisa Su puts it  "We're also predicting that there will be some leveling-off of some of the cryptocurrency demand."

Overall the message was mixed. 


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