To that end, specific SKUs designed specifically for cryptocurrency mining are supposed to help, though it is a delicate balancing act—the more GPUs that are allocated for mining cards, the less there are for gaming SKUs. Regardless, AMD has seen an uptick in graphics revenue. When asked what is driving that growth, and specifically the impact cryptocurrency mining might be having on AMD’s bottom line, Kumar said crypto sales have been “negligible.”
“That’s not a priority for us. We do not prioritize our product or make them for the crypto folks, it is more for the gamers and that’s a high priority from that standpoint. What’s driven the growth, as you know, we had the Radeon 6000 series high-end GPUs introduced very competitive and that is driving the growth in the GPU space.
Kumar also pointed to its server-based CNDA 2 products as a driver of revenue in the graphics space, and noted that higher-end gaming and premium consumer products “command better ASPs [average selling prices],” resulting in better profit margins. So the motivation exists to prioritize those segments over crytpo sales.
AMD Is Hopeful The Supply Shortage Will Ease Up A Bit In 2022
The other factor in all this is the supply shortage. In some respects, this has eased a bit, at least on the CPU side. Looking back, the Ryzen 9 5950X and Ryzen 9 5900X were both routinely out of stock when they launched, but are now much easier to find, and even at lower prices than MSRP.
On that topic, Kumar said “from a supply standpoint, it’s become more fortified right now,” and credited it with an uptick in supply on AMD’s revenue growth. He also sees things improving in the not-too-distant future.
“As there has been the realization that this demand is for real and there are customers demanding the technology and the products in particular where the competitiveness of the products is there, it continues to get better and even from our standpoint, as we get to 2022 and look at all partners across the board, the supply situation continues to get better,” Kumar said.