(Bloomberg) -- Advanced Micro Devices Inc. slipped in late trading after preliminary third-quarter sales missed projections by more than $1 billion, renewing concerns about a sputtering market for personal-computer chips.
Most Read from Bloomberg
Trump Says US Agency Packed Top-Secret Documents. These Emails Suggest Otherwise.
Nord Stream Leaks Caused by Detonations in Sign of Sabotage
Secretive Chip Startup May Help Huawei Circumvent US Sanctions
Kremlin Lets State Media Tell Some Truths About Putin’s Stalling War
Stocks Slide for Second Day Ahead of Jobs Report: Markets Wrap
Revenue in the period was about $5.6 billion, the company said in a statement Thursday, giving an early peek at numbers that were expected in the coming weeks. The average analyst estimate -- and the company’s own forecast -- had been about $6.7 billion.
AMD blamed the PC market for hurting sales, citing weaker demand and a build-up of inventory in the supply chain. The third quarter also will include $160 million in writedowns related to inventory, pricing and other issues, the company said.
“While our product portfolio remains very strong, macroeconomic conditions drove lower than expected PC demand and a significant inventory correction,” Chief Executive Officer Lisa Su said in the statement.
AMD is just the latest maker of PC supplies that’s been forced to warn investors that the market for its products is imploding. Nvidia Corp. and Intel Corp. have already shaved billions off their projections and said they need to burn off stockpiles of unused parts.
The stock fell 3.2% to $65.65 in extended trading. Even before the drop, the shares were down 53% this year, part of a broader pullback for the chip industry. Other semiconductor makers, including Nvidia and Intel, also slipped after AMD’s report.
AMD plans to give its full third-quarter earnings on Nov. 1, followed by a conference call to discuss the results. The company said it doesn’t plan to give any additional financial updates before then.
(Updates shares in fifth paragraph.)
Most Read from Bloomberg Businessweek
The Massive Gas Field That Europe Can’t Use
Even After $100 Billion, Self-Driving Cars Are Going Nowhere
Millions in Cryptocurrency Vanished as Agents Watched Helplessly
‘I Am Energy’: Inside the Bang Billionaire’s Reeling Empire
Musk Won’t Own Twitter Until the Shareholders Get Paid
©2022 Bloomberg L.P.
