AMD warns of third-quarter revenue shortfall on weaker PC demand, supply chain issues

In this article

AMD issued preliminary third-quarter results Thursday that are well below its initial guidance.

The semiconductor company reported preliminary quarterly revenue of approximately $5.6 billion. It had initially said it expected $6.7 billion in revenue for the quarter, plus or minus $200 million. AMD also said that its non-GAAP gross margin is expected to come in around 50%, while it had previously expected gross margin to be closer to 54%.

Shares fell about 4% in after-hours trading.

AMD said the shortfall was a combination of a “weaker than expected PC market and significant inventory correction actions across the PC supply chain.”

In its last quarterly earnings results, AMD had already given a forecast for Q3 that was lower than Wall Street expected.

AMD’s Client segment revenue came in at about $1 billion, the company said, down 40% year over year. Its Gaming segment generated about $1.6 billion in revenue, up 14% year-over-year, and its Data Center business also generated about $1.6 billion in sales for the quarter, up 45% year-over-year.

The boost in its Embedded business, which is primarily the result of acquiring Xilinx earlier this year, generated about $1.3 billion.

In total, sales of $5.6 billion were up 29% over Q3 2021 but down 15% from the last quarter.

Overall, the stock is down about 53% for the year, while the S&P 500 is down more than 21%.

Articles You May Like

Tesla Semi looks incredible as an electric motorhome
Ukraine will one day join alliance, says NATO as it promises further aid
Ask the Union Leaders: Business owners set to suffer as Royal Mail ‘will destroy the service’
Crypto entrepreneur’s net worth has fallen from $25.6bn to $100,000 after his firm collapsed
Crowds in major Chinese city clash with riot police in hazmat suits