Advanced Micro Devices' (NASDAQ: AMD) first-quarter 2023 results sent investors scurrying for cover. Share prices of the chipmaker fell more than 9% on May 3 on news of a decline in its revenue and earnings, as well as terrible guidance that suggests that the company's fortunes won't improve any time soon.

A weak personal computer (PC) market and slowing data center momentum weighed on AMD's performance last quarter. The company's Q1 revenue was down 9% year over year to $5.35 billion, while adjusted earnings fell 47% to $0.60 per share thanks to a contraction in the company's margins. And the guidance for the current quarter indicates that things are about to get worse for AMD.

AMD expects $5.3 billion in revenue this quarter, which would be a 20% drop over the prior-year period's revenue of $6.6 billion. What's surprising is that AMD sees a steeper decline in Q2 revenue despite claims that the PC market hit a bottom last quarter. The company points out that the gaming, client processor, and data center segments are on track to decline once again over the year-ago period.

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Source Fool.com