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Shares of AMD (AMD) are up over 5% after hours after the company reported second-quarter results that were better than expected as it continues to gain traction in multiple business areas.

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AMD has reported second-quarter earnings of $116 million, or $0.11 per share, on revenue of $1.76 billion. This is up 53% from a year ago and non-GAAP earnings in the quarter were $0.14 per share. This represents the best earnings in 7 years.

While the company reported $1.09 billion in revenue from its Computing and Graphics segment, which marks a jump of 64% year-over-year, AMD notes that quarter-over-quarter GPU sales have declined due primarily to lower demand from crypto miners.

The quarter-over-quarter decline was primarily related to lower revenue from GPU products in the blockchain market.

As previously reported, analysts have started to turn negative on the outlook of AMD’s GPU sales to the blockchain market over the last six months.

Bernstein analyst Stacy Rasgon recently highlighted the limitations of the GPU sales model, as it relied heavily on miners versus the traditional gaming customer.

Given AMD’s GPUs have been preferred for mining, and GPU supply in general to gamers was constrained industry-wide, we believe it is plausible that much of AMD’s GPU ramp has benefitted miners, rather than gamers, over this period.

In a similar vein, Morgan Stanley’s Joseph Moore expressed his concerns regarding the outlook of AMD’s cryptocurrency strength.

Cryptocurrency strength has to some degree offset the slow and steady progress establishing momentum in desktop and server microprocessors after several years away from those markets — but that higher revenue has driven higher operating expense, which further raises the bar for the processor business if crypto momentum should fade.

AMD isn’t the only company suffering from the dropping interest in GPUs for crypto mining. Nvidia (NVDA), AMD’s main GPU competitor, recently posted revenue of $289 in Q1 from crypto-related sales. However, the company anticipates that number to fall in the coming quarter.

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NVIDIA is expected to report earnings on August 16 after market close.

More: AMD Reports Second Quarter 2018 Financial Results
Related: Analysts Express Concern Over AMD’s Crypto-Related GPU Sales
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