AMD warns of third quarter revenue shortfall on weaker PC demand, supply chain issues

AMD issued preliminary third-quarter results connected Thursday that are good beneath its archetypal guidance.

The institution reported preliminary quarterly gross of astir $5.6 billion. It had initially said it expected $6.7 cardinal successful gross for the quarter, positive oregon minus $200 million. AMD 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%.

Shares fell much than 3% successful after-hours trading.

AMD said the shortfall was a operation of a "weaker than expected PC marketplace and important inventory correction actions crossed the PC proviso chain."

In its past quarterly net results, AMD had already fixed a forecast for Q3 that was little than Wall Street expected.

AMD's Client conception gross came successful astatine astir $1 billion, the institution said, down 40% year-over-year. Its Gaming conception generated astir $1.6 cardinal successful revenue, up 14% year-over-year, and its Data Center concern besides generated astir $1.6 cardinal successful income for the quarter, up 45% year-over-year.

The boost successful its Embedded concern AMD's Embedded business, which is chiefly the effect of acquiring Xilinx earlier this year, generated astir $1.3 billion.

In total, income of $5.6 cardinal were up 29% implicit Q3 2021 but down 15% from the past quarter.

Overall, the banal is down astir 53% for the twelvemonth portion the S&P 500 is down much than 21%.