Chipmaker Advanced Micro Devices forecasts disappointing 2Q sales based on weak PC demand

Markets Associated Press

Chipmaker Advanced Micro Devices says weak sales of personal computers hurt its revenue in the second quarter, and its shares skidded in extended trading.

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The company said its revenue will be about 8 percent lower than in the first quarter, suggesting a total of around $948 million. AMD said consumer demand for PCs was weaker than it expected. In April the company said its revenue would be between $968 million and $1.03 billion in the second quarter.

Analysts expected $999.6 million on average, according to FactSet.

Advanced Micro Devices Inc. stock sank 33 cents, or 13 percent, to $2.14 in after-market trading.

Late last month chipmaker Micron Technology Inc. also forecast disappointing quarterly results based on the weak PC market.

AMD's fiscal second quarter ended on June 27. The Sunnyvale, California-based company reported $1.03 billion in revenue in its first quarter.

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AMD shares fell 6 cents, or 2.4 percent, to $2.47 on Monday. The stock is down 7.5 percent in 2015.