AMD cuts third quarter revenue Forecast

Advanced Micro Devices Inc. or AMD,the second-largest supplier of microprocessors in the world, has cut its third-quarter sales guidance to as low as $1.59 billion. This is 4 percent less than the same quarter a year-ago.Last year third quarter revenue was $1.66 billion.

The company attributes this to fewer orders in Western Europe and North America(mature markets).

Notably, Intel, the world's top chip maker, earlier on August 27, has already lowered its third-quarter revenue forecast.

Now, AMD's cut its its third-quarter sales guidance this huge, can prove to affect negatively; as till Intel's cut, the world would have thought the cut as some cautious move by Intel. But now investors will get a clear indication that all is not well in chip industry; and intel's cut in revenue guidance may not be presenting the true picture of the industry. --------


Unknown said...

Alright, let's sort this out. First off, AMD has not cut their guidance by 4%, but by 1-4%. Even four percent can hardly be called "huge" and I suggest that you adapt your heading to reflect what this really is: A very moderate correction.

Second, few people ever thought of the move "as some cautious move by Intel" (and NVDA for that matter). Analysts and the general market were expecting AMD to follow suit and warned of a "chip glut" and "sales falling off a cliff". AMD's share price these recent months should be proof enough ...

AMD has dispelled those rumors and added their estimate to Intel's... which says that even though sales could have been better, the chip industry is doing just fine :-)

Mr Bisht said...

@Falk___________I acceded yo your first suggestion.Regarding the cut range, I think if eventually happens to be 4 percent then; it will be significant; to this you will agree too.

The last para of the post, is simplification of why Intel suffered and AMD gained by the news.

Regarding, chip industry is doing fine, one should look at the devices which are competing vigorously with PC sector.

Loved your comment. It appears, esteemed readers like you, will fulfill the purpose of this blog. Thanks.