NEW YORK – Shares of Advanced Micro Devices fell sharply in premarket trading Friday, a day after the chipmaker reported disappointing first-quarter earnings and outlook for the current quarter.
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Chipmakers have been under pressure as people buy fewer computers and shift to smartphones, tablets and other mobile gadgets. PC sales fell more than 5 percent in in the first quarter of the year, according to research company Gartner.
Late Thursday, AMD reported a wider first-quarter loss than a year ago and a 26 percent drop in revenue. For the current quarter, the Sunnyvale, California-based company said it expects revenue to be flat to down by up to 6 percent from the previous quarter. Analysts surveyed by FactSet had expected revenue of $1.13 billion, which would represent growth of 10 percent from the quarter ended in March.
Advanced Micro Devices Inc. shares fell nearly 11 percent in trading before the market opened Friday. They fell 22 percent in the last 12 months.