AMD video card producer has released the financial performance report for Q4 FY 2018 and full year with the highest profitability over the past 7 years.
The company's revenue reached $1.42 billion in Q4 and $6.48 billion over 2018 in general, up $5.25 billion year-on-year, the official financial report shows. Despite strong results, the producer failed to meet its initial goal of $20 million due to lack of demand from crypto miners.
Notably, the company expects weaker performance in the current quarter which is attributed to almost completely silent crypto mining segment.
"The sequential decrease is expected to be primarily driven by continued softness in the graphics channel and seasonality across the business. The year-over-year decrease is expected to be primarily driven by lower graphics sales due to excess channel inventory, the absence of blockchain-related GPU revenue and lower memory sales," says the financial report.
However, that did not come as a surprise, as the company forecasted such scenario back in October 2017.
Nvidia, the major AMD’s rival in the industry, has faced similar pressure recently. As the company report reads, it had to downgrade the revenue guidance for Q4 of FY 2019 from $2.7 billion to $2.2 billion.
Like AMD, Nvidia also expected the decline in demand for video cards and took it into account in the previous outlooks. The company attributes the observed downturn to the global economic uncertainty, in China, specifically, which affects demand for the company's products not only from crypto miners but ordinary gamers as well.
"Q4 was an extraordinary, unusually turbulent and disappointing quarter," Nvidia CEO Jensen Huang concluded.