AMD shares fall more than 7% on weak outlook

AMD shares were down much than 7% connected Friday arsenic investors digest the semiconductor's disappointing preliminary third-quarter results Thursday that were good beneath its archetypal guidance.

The chipmaker chopped its income forecast connected Thursday for the 3rd quarter, blaming a larger-than-expected diminution successful the idiosyncratic machine marketplace and proviso concatenation issues.

AMD present expects preliminary quarterly gross of astir $5.6 cardinal acknowledgment to "reduced processor shipments." That's much than $1 cardinal beneath the $6.7 cardinal it had antecedently forecast arsenic the midpoint of its gross expectations for the quarter.

The institution besides said that its non-GAAP gross borderline is expected to travel successful astir 50%, portion it had antecedently expected gross borderline to beryllium person to 54%.

Several firms, including Piper Sandler, Stifel, KeyBanc Capital Markets and Mizuho Securities chopped their terms targets for AMD successful notes to clients connected Friday, though each of those maintained a bargain oregon overweight rating.

Shares of different chipmakers similar Intel and Nvidia were besides down, each much than 4%, arsenic anemic PC request and proviso concatenation issues could measurement connected different semiconductor players.

WATCH: AMD's 3rd 4th chopped was deeper than the marketplace expected, says Bernstein's Stacy Rasgon