Advanced Micro Devices sinks as preliminary Q3 sales miss estimates by wide margin
Advanced Micro Devices (NASDAQ:AMD ) fell about 4% in after-hours trading after the semiconductor company reported preliminary third-quarter results that missed estimates by a wide margin.
The Dr. Lisa Su-led company said third-quarter sales would be about $5.6B, compared to estimates of $6.71B. The company blamed the shortfall on a weaker-than-expected PC market and continued inventory corrections.
“The PC market weakened significantly in the quarter,” said Dr. Su in a statement. “While our product portfolio remains very strong, macroeconomic conditions drove lower than expected PC demand and a significant inventory correction across the PC supply chain."
Dr. Su added that AMD's (AMD) data center, embedded and gaming segments continued to show strength and the company's business model and balance sheet will help it navigate the downturn.
Breaking it down by segment, client revenue fell 53% sequentially and 40% year-over-year to $1B, while data center revenue rose 8% sequentially and 45% year-over-year to $1.8B.
