Shares of Advanced Micro Devices Inc. fell to their lowest point in nearly three years Tuesday, a day after the chipmaker said weak demand for personal computers will hurt its revenue in the second quarter.
Late Monday, AMD said that its revenue will be about 8 percent lower than in its first quarter, to about $948 million. That would below the $968 million to $1.03 billion range the company had previously expected. Analysts expected revenue of $993.2 million on average, according to FactSet.
Chipmakers, such as Intel Corp. and Micron Technology Inc., have been hurt by weak demand for desktop computers. Sales for PCs have been falling as more people use their smartphones and tablets instead. Research company Gartner estimates PC makers shipped 71.7 million computers in the first quarter of the year, down 5.2 percent from a year earlier.
AMD, based in Sunnyvale, California, designs chips that power PCS, tablets, gaming consoles and other gadgets,
Shares of AMD fell 38 cents, or 15.6 percent, to $2.09 in afternoon trading Tuesday. Earlier its shares fell to $2.02, their lowest point since November 2012.