Right after the markets close on January 29, Advanced Micro Devices (AMD) is expected to release its 4th quarter financial report for 2018, and a number of analysts are predicting that the company could be facing a so-called "Crypto Hangover." Christopher Rolland, who is an analyst for Susquehanna, indicated that — while AMD had done a good job of managing expectations related to the release of the report — falling retail prices for the company's line of graphics processing units (GPUs) could significantly hurt them. Cryptocurrency miners often use AMD's Radeon RX580 GPU, and while this card was selling for about $550 last February, today it sells for about $180, which represents a price drop of 67%. Matthew Ramsay, who is an analyst for Cowen, said in an interview with MarketWatch, that "Following a messy Q3 that saw a material impact from near-term GPU channel sell-in challenges, we believe inventory impacts could linger to start the year, and model Q1 2019 slightly below consensus." Lisa Su, who is the CEO of AMD, said in response to 3rd quarter results last year that, while graphics channels sales were in fact down in that quarter, the company had considerably increased its sales of both client- and server-class processors. In terms of the graphics channels sales, she went on to say that she eventually expects them to return to normal, but that it may take a few quarters for this to actually happen. AMD is not the only hardware manufacturer to suffer from "Crypto Hangover." The bear market for cryptocurrencies in 2018 also adversely affected Nvidia, which is a producer of GPUs in Taiwan. Falling prices of cryptocurrencies led to a decrease in the profitability of mining cryptocurrencies, which devastated sales of Nvidia GPUs. In the last quarter of last year, there was a dramatic sell-off of the company's stock. This led to the stock losing more than 50% of its value, which in turn led to Nvidia becoming the very worst performer in the S&P 500 for 2018.
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