Thomson Reuters
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
AMD, Advanced Micro Devices, is scheduled to report first-quarter earnings after the closing bell on Wednesday.
Analyst polled by Bloomberg expect the chipmaker to post adjusted earnings of $0.09 per share on revenues of $1.57 billion.
"We expect AMD to report C1Q ABOVE and guide C2Q INLINE on an absolute basis despite waning momentum in Crypto exiting C1Q," Credit Suisse analyst John Pitzer wrote in a note ahead of the results. "Specifically, we expect Crypto to drive $150-200 mm of UPSIDE to both our C1Q and C2Q Rev estimate."
The crypto craze that peaked in January provided a boost for graphics processor unit makers like AMD and its competitor Nvidia. But as prices have fallen in 2018, so too has would-be miners interest in the chips that were traditionally only popular among PC gamers.
"Ultimately, we don't believe Crypto GPU Rev is sustainable and see 3 potential issues: (1) Price volatility in Ethereum which makes mining less economical, (2) Bitmain's Ethereum ASIC scheduled for release in July, and (3) An increased probability of Crypto moving from proof-of-work to proof-of-stake negating the need for mining/GPUs all together," Pitzer added.
Ahead of the report, millennial investors on the brokerage app Robinhood were gobbling up shares of the company 40% more than they were selling - a marked shift from last quarter when young investors were dumping the stock.
Shares sank about 2.7% on Wednesday, and are down 10% since the beginning of the year.
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