logo-loader
viewAdvanced Micro Devices, Inc.

Advanced Micro Devices stock tumbles after weak prelim Q3 results

semiconductor_350_50780ff20017d.jpg

Advanced Micro Devices' (NYSE:AMD) stock fell sharply in pre-market trading Friday, one day after saying third quarter revenue is likely to drop 10 per cent from the last quarter due to weaker demand for its products, and amid a challenging economy.  

The Sunnyvale, California-based company, which makes graphics processors and dynamic random access memory chips, said revenue is now slated to dwindle 10 per cent sequentially.

Previously, the company forecasted sales to fall one per cent, plus or minus three per cent, sequentially. 

Analysts polled by Bloomberg expected a per-share profit of two cents, on revenue of $1.4 billion for the period that ended September 29.

Shares, in Friday pre-market trading, lost 8.44 per cent to $2.93 each on the New York Stock Exchange.

Gross margin for the quarter is projected to be 31 per cent, down from a prior view of 44 per cent due to the write-down of inventory worth $100 million.

The company said margins were also crimped by weaker-than-expected demand, which contributed to lower selling prices. 

Operating costs, in the third quarter, are expected to fall seven per cent sequentially due to tightly controlled expenses in the quarter, AMD said. 

AMD is scheduled to report third quarter results on October 18, after markets close. 

Quick facts: Advanced Micro Devices, Inc.

Price: 52.34 USD

NASDAQ:AMD
Market: NASDAQ
Market Cap: $61.3 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Electric vehicle sales to accelerate following coronavirus pandemic

Roskill analyst Jose Lazuen tells Proactive London's Andrew Scott severe falls were expected in EV sales but that European and Chinese policies coupled with consumer preferences have shown them to remain strong. He adds that policy is going to favour and push EV sales in certain jurisdictions...

19 hours, 7 minutes ago

2 min read