TUL saw revenue collapse 80 percent in April as mining boom waned

Posted on Wednesday, May 23 2018 @ 10:19 CEST by Thomas De Maesschalck
DigiTimes reports video card makers are expected to see noticeable drops in profitability due to the abrupt waning of the cryptocurrency mining craze. Everyone in the supply chain enjoyed a big boom in sales, but now the pendulum may swing the other way. The site notes TUL, the firm behind the PowerColor brand, saw a 80 percent plunge in revenue in April:
But the sudden decline in demand for mining graphics cards in April caused TUL's revenues for the month to plunge 80% sequentially to NT$280 million, the lowest since May 2017. The other Taiwan makers had scored revenues from motherboards, servers and notebooks in the month, making their actual declines in revenues from graphic cards sales hard to figure out.

Earlier, both Nvidia and AMD conservatively estimated that demand for mining graphic cards would slow down and their revenues for the second quarter may decline markedly. Accordingly, industry sources said that supply chain partners may no longer see significant revenue growth in the rest of the year following April 2018 and may even suffer sharp revenue drops.
It's going to be interested to see how this affects the second-quarter earnings from AMD and NVIDIA. Both firms claimed mining was a relatively small part of their business, but there's some doubt how many "gaming" cards really ended up in mining farms.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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