Advanced Micro Devices became the latest victim of the sluggish PC market Friday, after the chipmaker warned that third-quarter revenue could decline 10% from the previous quarter.
AMD's shares tumbled 14% following the warning.
The gloomy projection comes as the company faces "weaker than expected demand across all product lines caused by the challenging macroeconomic environment," and is far worse than what the company's management was originally expecting. In July, AMD said it expected revenue to fall about 1% during the third quarter.
Shipments of PCs are on pace to fall this year for the first time since the dot-com bust of 2001, according to a new forecast from IHS iSuppli, as a growing number of consumers flock to to tablets, most notably Apple's (AAPL) iPad.>
But hopes are high that Microsoft's (MSFT) Windows 8, which goes on sale Oct. 26, could spark some holiday buying and help the PC industry.
Both AMD and Intel are on tap to open their books next week.
|Your Toys 'R' Us closing questions answered|
|James Comey's book is already a best seller, with Trump's help|
|Trump spending spree may speed up the Fed|
|Snapchat stock loses $800 million after Rihanna responds to offensive ad|
|Beyond passwords: Companies use fingerprints and digital behavior to ID employees|