Advanced Micro Devices (AMD) on Tuesday forecast third-quarter revenue slightly below Wall Street estimates. For the third quarter, AMD expects revenue of C$6.7 billion, which is slightly below analysts’ estimate of C$6.82 billion.
For the full year, AMD expects between C$26 billion and C$26.6 billion, compared to about C$26.3 billion earlier. Analysts had forecasted C$26.18 billion.
In the second quarter, AMD’s revenue leaped 70 per cent to C$6.55 billion, slightly above analyst estimates of C$6.53 billion, and adjusted earnings for the second quarter were C$1.05 per share, 2 cents above analyst estimates.
AMD, like other technology and semiconductor companies, faces several challenges that affect its revenue growth, including inflation and declining demand for personal computers, which has led to lower-than-expected earnings and forecasts from AMD and other semiconductor companies.
Despite the gloomy outlook, AMD Chief Executive Officer Lisa Su told analysts on earnings calls that the company was continuing to see growth in its cloud business. Su said AMD had continued to gain market share in the data center business.
On the slowing PC market, Su said that AMD had revised its outlook for the PC market for the current year to drop by the mid-teens percent from previous projections of a high single digit percent drop. Looking ahead, Su noted that the company will focus on higher end PC market.
The sources for this piece include an article in Reuters.