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Friday, 12 October 2012 08:04

AMD to miss revenue estimates

Written by Fudzilla staff



Shares drop 7 percent


Shares of chipmaker AMD slipped 7 percent after the company announced its Q3 revenue will be 10 percent lower than Q2 revenue.

Analysts were expecting AMD’s revenue to hit $1.38 billion, but according to AMD’s latest announcement it could come in at less than $1.3 billion. Gross margin will also be lower than expected 31 percent versus 44 percent.

AMD is blaming the downturn on weak demand, but analysts see a wider problem, for AMD and the industry as a whole.

PC demand is expected to remain weak, despite the Windows 8 launch and Intel’s efforts to promote ultrabooks. Strong demand for tablets is also having an impact on the market, which is bad news for AMD and Intel.

More here.


Fudzilla staff

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