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(Reuters) – Advanced Micro Devices Inc (AMD.O) on Wednesday forecast fourth-quarter revenue below estimates as the chipmaker wrestled with waning demand from cryptocurrency miners for its high-margin graphic processors, sending its shares down 21 percent.
FILE PHOTO: Visitors look at motherboards being displayed at the AMD booth during the 2012 Computex exhibition at the TWTC Nangang exhibition hall in Taipei June 6, 2012. REUTERS/Yi-ting Chung/File Photo GLOBAL BUSINESS WEEK AHEAD
AMD said it expected revenue of about $1.45 billion, plus or minus $50 million, below analysts’ estimates of $1.6 billion, according to Refinitiv data.
The chipmaker said sales in its graphics and computing business rose 12 percent to $938 million, but sales in its enterprise, embedded and semi-custom unit fell 5 percent to $715 million.
AMD said strong sales of Ryzen chips were partially offset by lower revenue from its graphics business, where blockchain-related GPU sales were negligible.
With cryptocurrency prices in free fall due to regulatory worries, miners are cutting back on their investments in equipment, hurting the company and chief gaming chip rival Nvidia Corp (NVDA.O).
AMD said net income climbed to $102 million, or 9 cents per share, in the third quarter ended Sept. 29 from $61 million, or 6 cents per share, a year earlier.
Excluding items, AMD earned 13 cents per share, narrowly beating estimates.
Revenue rose to $1.65 billion, but missed estimates of $1.7 billion.
Reporting by Arjun Panchadar in Bengaluru; Editing by Sai Sachin Ravikumar
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