Major GPU Suppliers Show Increased Profits from Bitcoin Mining

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Major GPU Suppliers Show Increased Profits from Bitcoin Mining

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Recent figures released by Global GPU producers have shown that demand for products related to blockchain and cryptocurrency mining is on the rise, and company stocks and profits have benefited as a result.

Processing and chip units giant Nvidia and computer tech company AMD are two of the world’s biggest GPU producers and both companies have reported an increase in demand for their products. Devinder Kuma AMD CFO has suggested that the company’s computing and graphics segment reviews “was USD 1.12 billion, up over 95% due to strong sales of Radon and Ryzen products”, the former driven by gaming and blockchain demand. Kuma says that he expects the trend will continue into the future.

Global giant, South Korea’s Samsung, has returned a 58% year on year growth with profits of KRW 15.6 trillion or USD 4 billion for the first quarter of 2018, after taking on mass production of ASICS chips for Bitcoin mining. Samsung suggests that crypto mining has partly contributed to the reported growth. Executive vice president of Samsung’s investor relations, Robert M Yi, points out that the earnings increases were driven by:

“…strong demands in server and graphic cards memories as well as earning improvement in both the System LSI and Foundry businesses led by an increasing demand for chips used in flagship smartphones and cryptocurrency mining.”

Another chip producer claims to have benefited from crypto mining processors after releasing first-quarter figures. Taiwanese semiconductor manufacturer TSMC has reported a similar increase in demand for this type of equipment.

However, despite these companies posting Q1 profits, a Taiwanese report just released by Forbes shows April figures painting quite a different picture. The report claims that partners of both AMD and NVIDIA have experienced a massive drop in graphics card shipments in April. The reduction is reportedly due to the recent sharp drop in the value of cryptocurrencies, making mining less profitable.

image source: https://pixabay.com/en/entrepreneur-idea-competence-vision-1340649/ – geralt

 

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