One of the biggest semiconductors manufactures, AMD, released their quarterly financial report on Oct 24. There is bad news for crypto and blockchain enthusiasts. The report says that blockchain-related GPU sales in the third quarter of 2018 were negligible.

The overall performance of the company is down 14% from the second quarter o 2018, however, when compared to last year, it is up 12%. According to Chief Executive Officer Lisa Su:

“In graphics, the year-over-year revenue decrease was primarily driven by significantly lower channel GPU sales, partially offset by improved OEM and data center GPU sales.”

In the report, the company asserted that CPU processor sales made up for the drop in graphics card sales which have become a negligible part of its business. Notably, last year AMD and competing chip maker Nvidia were huge recipients of heaving crypto markets. However, like the digital assets themselves, 2018 has been the opposite for both companies.

Summit Insights Group analyst Kinngai Chan said, “The miss was due to GPU. AMD had too high an exposure to the crypto-currency market. Additionally, they do not have a competitive line-up in the PC Gaming market.”

The stock prices of AMD also took a significant hit. The company stock has dropped around 27% since the beginning of the month. In a significant contrast, Bitcoin itself which has dropped by only 2% in the same time. The release of this latest revenue report also added to the AMD share price plummet with a drop of 9.17% on the day. Rivals Nvidia also took the same path with its share dropping 2.5%.

CEO Lisa Su is not hopeful for blockchain based GPU sales to increase soon. After overestimating sales by 82% in the 2nd quarter of 2018, the CEO said the company was “expecting very little from blockchain,” and it had lowered its forecast for revenue from the industry. Although Su had admitted that blockchain was only “a bit of a distraction, in the short term” for AMD’s business. Nonetheless, she is a big supporter of the technology. She said: “the idea you can do all these peer-to-peer transactions, a decentralized network, it’s a good technology.”

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