The red chip developer continues its path of success, but it shows that even if everything is not simple, with the collapse of its value, the stock will close to 30, mainly due to the decline in the demand for video cards
The economic reporting season is again with us, providing interesting and somewhat surprising events, among others also for I HAVE D, Which returned to the path of financial successes and gains after many years of losses and discovers that sometimes not enough "only" to provide profits, at least in the eyes of investors owned by the shares.
The chipmaker introduced a solid third quarter with revenue of 1.653 billion, net income of 102 million and gross margin of 40 percent - all improvements in performance compared to the same period last year.
However, a significant decline in revenue from the graphics processing market as the demand for products for cryptographic coin mining declined, and in particular the forecast for a continuation of the trend in the next quarter, which will lead to a total decrease in the company's revenues to about $ 1.45 billion, led to the creation of a real snowball among investors Has enjoyed high quality elevators over the last two years, plunged down and lost more than 30 within a few days.
The expected level of revenues for the final quarter of the year is also higher than the company achieved at 2017, but it seems that once the performance does not meet the expectations of the early analysts, it is enough to scare away a significant portion of the investors.
The key question now is how the transition to innovative 7 nanometer lithography, in the world of primary processors and especially in the world of graphics processing, will affect the market share and financial capabilities of the company. Believe that the future of I HAVE D pink? Let everyone share your feedback!