The prominent tech manufacturer, AMD, has plans of increasing their graphics cards production, whose supply has dwindled all over the world. Shortly after launching their new product, RX Vega GPU, it has flown off the shelves, as more and more individuals are interested in entering the mining industry. The crypto craze is also well-represented in AMD’s finances, as the company boasted almost $1 billion in revenue during Q4 2017. However, their latest production plan is sure to delight both miners and gaming enthusiasts.
The crypto craze has caused several tech manufacturers, such as AMD to address continued shortages in hardware by increasing their supply. AMD specializes in Graphics Processing Units (GPUs), which is required to mine cryptocurrencies such as Monero and Ethereum.
AMD’s main rival, Nvidia, has already addressed shortages by instructing its authorized retailers to restrict the number of graphics cards that an individual buyer is allowed to purchase. AMD recently addressed the growing problem of its Radeon cards and cited the growing cryptocurrency mining industry to be the primary cause of this shortage. However, the company has promised to increase their supply to meet the ever-growing demand.
According to the online publication, Polygon, AMD CEO, Dr. Lisa Su, acknowledged AMD’s dwindling supply and confirmed that the company would be increasing their production.
Surprisingly, this new statement stands in conflict with Su’s previous prediction. During Q4 2017, the CEO predicted that the demand for graphics cards would level off in the near future. In October 2017, Su stated that AMD would be conservative in its estimates for graphics cards production as the demand would soon experience a decline.
During a conference call with several of AMD’s top investors, Su presented the company’s latest financial report and acknowledged that the cryptocurrency mining industry accounted for a significant portion of AMD’s business. During Q4 2017, AMD declared $1.48 billion in revenue. Of this figure, $958 million came directly from the company’s Computing and Graphics division. So far, this division has been highly lucrative, as they demonstrated with their 60% year-on-year profit increase. Graphics card sales is a huge contributing factor to this success.
However, merely promising to up its production might not be enough to appease the gaming and mining community, as AMD graphics cards pose some shortcomings which its supporters hope will be addressed shortly. Many of AMD’s graphics cards do not have enough memory to satisfy the needs of gamers and miners. The AMD RX Vega and RX 400 and 500 simply use GDDR5 and HBM2. Experts believe that AMD should address this shortcoming first before increasing its supply.
Notably, retailers are determined to create an equal playing ground when it comes to purchasing graphics cards. Several major retailers have already confirmed that they will be limiting the number of graphics cards that can be bought by an individual, to ensure that gamers also have a fair chance of getting their hands on the increasingly sought-after products.
The production is also likely to be affected by the cryptocurrency market’s volatility and price trends. Mining operations’ profitability is directly influenced by the cryptocurrency’s market price. If prices start to dwindle, so will the demand for graphics cards and vice versa.