AMD's shares fell after the company reported that it missed Wall Street's gloomy profit estimates and predicted more doom to follow.

Shares of AMD fell 2.3 per cent and you can pick up a second hand one in a back ally for $4.75. AMD's second-quarter profit fell to $37 million from $61 million, a year ago and its revenue declined to $1.41 billion from $1.57 billion last year.

Earlier in the month, the chip maker warned it expected an 11 per cent sequential decline in sales, compared with a previous forecast of a 3 per cent rise. This was due to softer-than-expected sales in China and Europe along with weaker consumer demand, AMD said. AMD thinks that things will get worse in the third-quarter. AMD forecast a sequential decline in revenue for the third quarter by 1 per cent.

Rory Read, AMD president and chief executive in a statement that the chipmaker was taking definitive steps to improve its performance and correct the issues within our control. However he is expecting headwinds will continue in the third quarter  and there might be a few giant squid and the odd mermaid attack along the way.

What is worrying some analysts is that AMD's inventory grew significantly over the quarter by about 42 per cent.