AMD to Wall Street: Who Shocked Ya?
Advanced Micro Devices (NYSE:AMD) delivered more foreboding news to the already-troubled PC industry on Thursday when it announced that its revenues for the fiscal third quarter are likely to fall almost 10 percent from the previous quarter, according to a Reuters report.
The chipmaker is yet another casualty of a suffering PC market that has been crippled by a slowing global economy and the rapidly growing demand for tablet devices. AMD had previously expected its third-quarter revenues to fall by only about 1 percent to 4 percent, maximum.
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But the anticipated 10 percent drop in Q3 revenue has AMD shares at $2.80 per share, down over 14 percent on the hit.
AMD is not the first PC industry player to announce lower-than-expected quarterly revenue due to increased market pressure from rising tablet sales. Fellow chipmaker Intel (NASDAQ:INTC) was forced to announce similar quarterly shortcomings after its aggressive promotion of its new “Ultrabook” laptops failed to live up to the hype.
As tablets like Apple’s (NASDAQ:AAPL) iPad continue to eat away at PC sales, companies like AMD and Intel, as well as ARM Holdings (NASDAQ:ARMH) and NVIDIA Corp. (NASDAQ:NVDA) are left eagerly awaiting the release of Microsoft’s (NASDAQ:MSFT) new Windows 8 software platform, something the chipmakers hope will boost floundering PC sales.