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Downfall Of Cryptocurrency Causes AMD Miss Its Target Revenue By $50 M

Things seem to have turned around for AMD with its Ryzen CPUs. But still, AMD failed to meet its target revenue due to low GPU sales and the downfall of crypto-currency.

During the recent earnings call for the third quarter of AMD’s fiscal year, the company noted that it has failed to meet its revenue target.

According to AMD, it saw a revenue of $1.65 Billion for the quarter which is lower compared to $1.76 Billion revenue last quarter. Not only that, the company failed to meet the target by $50 million.

AMD noted that the reason for not meeting its revenue target is “significantly low GPU sales”. This difference in revenue is partly due to the downfall of crypto-currency mining. According to AMD, it saw “negligible” gain from cryptocurrency mining.

In graphics, the year-over-year revenue decrease was primarily driven by significantly lower channel GPU sales. Partially offset by improved OEM and datacenter GPU sales. Channel GPU sales came in lower than expected, based on excess channel inventory levels, caused by the decline in blockchain-related demand that was so strong earlier in the year.

It seems that AMD was still expecting crypto-currency mining to sell more of its GPUs. However, AMD has fallen victim to its own expectations. Another reason for AMD to miss its revenue target could be the lack of new AMD GPUs.

Speaking of AMD, the company has removed the support FMA4 instruction set from its Zen CPUs. Turns out, AMD Zen CPUs still support the FMA4 instruction set.

But, the OS still not has access to the FMA4 instruction set in the Zen CPUs. Meaning, even if the support exists, the OS can’t utilize it. As for the reason behind its removal, it is unknown why AMD chose to eliminate it.

Furthermore, AMD has also announced the Dynamic Local Mode for its Ryzen Threadripper CPUs. According to AMD, this feature will bring 47% performance boost to the CPUs.

Not only that, AMD also announced that its 2nd-gen Raven Ridge APUs will drop in late 2018. The announcement was made during Hot Chips 30.

While AMD saw a drop in its revenue, however, the company will reportedly launch Radeon RX 590 Reference by next month. With the release of the RX 590, AMD could potentially cover the target revenue in the ongoing quarter.