AMD Tumbles After Flat Forecast Fails to Satisfy Investors
- Share price drops on modest improvement in profitability
- New chips taking time to have impact in the market, AMD says
Advanced Micro Devices Inc. tumbled 13 percent in early New York trading after the chipmaker said second-quarter sales declined more than it had originally projected, citing weak consumer demand for personal computers.
Photographer: Ashley Pon/BloombergAdvanced Micro Devices Inc.’s new products, aimed at trying to claw back orders lost to Intel Corp. in the market for chips that run personal computers, are giving sales a boost -- just not one big enough to help profitability and satisfy investors after the stock increased almost fourfold last year.
Fourth-quarter revenue may be as low as $1.34 billion, based on a forecast given by the Sunnyvale, California-based company Tuesday in a statement. That would match the average analyst estimate, according to data compiled by Bloomberg. Though the midpoint of the outlook would translate to about a 26 percent sales gain from a year earlier, it would be a decline of about 15 percent from $1.64 billion in revenue reported for the third quarter.