US semiconductor company quarterly earnings dazzling AMD, the industry's focus shifted from chip sales to blockchain technology provider identity above.
The application of the blockchain is not limited to the virtual currency and is expected to break out at any time.Most of the circulating virtual currency in the market need to be 'mined', that is, the virtual currency miner uses the extremely fast GPU to solve complex mathematics in the blockchain Puzzle, and then get new digital currency as a reward, the main consumption of computing resources and power resources. Engage in the cryptocurrency boom 'miners' are looking for ways to improve their fortune.
As a supplier, GPU prices will surely make a huge profit for AMD and NVIDIA, and analysts expect GPU sales to grow further as more and more companies worldwide plan to tap the Bitcoin market or blockchain.
Investors are excited about this prospect. On Wednesday, AMD shares rose about 6%, while NVIDIA shares rose 3% to a record high.
Bitcoin prices soared by 1,300% in 2017, attracting more and more people across the globe to monetize the digital currency, pushing up the demand for the GPU.
In the past, AMD and NVIDIA tried to downplay revenue growth expectations from the blockchain segment, but analysts believe the blockchain market is overwhelming.
'We think the blockchain market is bigger than people expect and will become a market where GPUs can continue to be used and ultimately ASIC chips that are targeted at blockchain applications, AMD and NVIDIA can at least benefit from patented ASIC chips. 'Stifel analyst Kevin Cassidy said.
Although blockchain is known for its technology behind Bitcoin, it is also increasingly being used to increase safety and business efficiency. For example, De Beers, the world's largest diamond mining company, uses blockchain technology to identify The authenticity of diamonds
Credit Suisse analyst John Pitzer said: 'Although some people are not bullish on cryptocurrencies, we think blockchain technology is more sustainable than most believe.'
AMD stock price trend
John Pitzer estimates that, In 2017, AMD chip sales to blockchain companies may reach 320 million US dollars, and this is only a small part of AMD's annual revenue of 5 billion US dollars.
AMD CEO Lisa Su said after a earnings conference call that although the blockchain is an unstable and dynamic market, AMD saw its strong growth in December and will continue into the first quarter.
In October last year, AMD's largest rival NVIDIA released an extreme report that it generated revenue from the blockchain area of more than 100 million US dollars, the company will be announced on February 8 fourth-quarter earnings.
Recently, the CCN quoted South Korean media reported that Samsung and China's mining hardware manufacturers signed a contract for the contract, has started production specifically for bitcoin mining The design of the ASIC chip.
According to reports, Samsung Electronics last year completed the development of semiconductor ASIC (application specific integrated circuit) for bitcoin mining, a Samsung Electronics spokesman said, 'We are providing for China's virtual currency mining hardware company to provide Business
