Amd share price falls on weak gpu sales

Shortly after AMD's release of good third-quarter financial results, the stock market responded quickly to below-expected operating income and market share figures, with an initial decline of approximately 9.2% in the year. share price before the markets closed.

GPUs only represent 30% of AMD's revenue

This initial drop was followed by an even bigger drop to a stock price of $ 17.88 at the time the information came to light, a sharp drop compared to the initial value of $ 25.04 the same day. AMD held a conference call for its investors to accept the report and tried to better explain what was happening. In particular, they attribute the decline in GPU sales to a large decline in the cryptocurrency mining GPU sales market relative to the first half of 2018.

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AMD shared the news that GPUs now contribute only about 30% of their revenue, while the other 70% comes from the Ryzen-based processor division, which have been a huge success since hitting the market early from last year. They also strongly hinted at new products coming from both segments, including a 7nm data center GPU later this year, alongside new Ryzen + laptops with Vega graphics, but it looks like more needs to be done to appease investors..

AMD has lost a lot of ground against Nvidia in the GPU market, and it does not appear that the situation will improve in the short term. We will have to wait for Navi's arrival at 7nm to see if Radeon's course straightens.

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