Advanced Micro Devices' (NASDAQ: AMD) stock fell nearly 5% during after-hours trading on Oct. 6 in response to a preview of its upcoming third-quarter earnings on Nov. 1. The chipmaker now expects its revenue to rise 29% year over year to $5.6 billion with an adjusted gross margin of 50%, compared to its prior forecast for about 55% growth with an adjusted gross margin of 54%.
CEO Lisa Su blamed that big miss on macroeconomic conditions, which "drove lower-than-expected PC demand and a significant inventory correction across the PC supply chain." The company expects its client (or PC) revenue to plunge 40% year over year to $1 billion, which will largely offset the growth of its data center, gaming, and embedded divisions.
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Source Fool.com