Why Advanced Micro Devices Shares Shrank

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Advanced Micro Devices (NYS: AMD) have shrunk by as much as 14% today after the company reported second quarter results along with soft guidance.

So what: Revenue fell 10% from last year to $1.4 billion, resulting in net income of just $37 million, or $0.05 per share. CEO Rory Read cited overall macro weakness, soft consumer demand, and lower demand internationally for the tough quarter.


Now what: Read also said the company was taking definitive steps to boost performance and fix problems, but that next quarter is also expected to be challenging. AMD expects next quarter's revenues to fall by 1% sequentially, plus or minus 3%. The figures show that chip giant Intel is chipping away at AMD's already smaller market share in both PCs and servers.

Interested in more info on Advanced Micro Devices? Add it to your watchlist byclicking here.

The article Why Advanced Micro Devices Shares Shrank originally appeared on Fool.com.

Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Intel.Motley Fool newsletter serviceshave recommended buying shares of Intel. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners