Shares of leading chip stocks were tumbling today after Advanced Micro Devices (NASDAQ: AMD) confirmed what investors had been fearing: a severe downturn in PC demand. AMD won't release fiscal third-quarter results until November, but it announced preliminary revenue of approximately $5.6 billion for the quarter, missing management's forecast for $6.7 billion.  

As a result, investors hit the sell button on chip stocks, sending shares of Advanced Micro Devices down by 10.9%, Nvidia (NASDAQ: NVDA) by 6.8%, and Intel (NASDAQ: INTC) by 4% as of 12:40 p.m. ET.

This caps off a rough year for AMD, with its stock price already lower by 50% year to date, despite still being on pace to report strong full-year revenue growth.

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Source Fool.com