The Buzz
AMD sinks 14% on revenue warning amid weak PC demand
October 12, 2012: 5:40 PM ET
Click the chart to track AMD's stock.
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.
In particular, weak demand for personal computers has been weighing on companies like AMD (AMD) and rival chipmaker Intel (INTC), which cut its third-quarter sales forecast last month.
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.
Amid the lackluster sales environment, shares of AMD, Intel as well as PC makers Dell (DELL) and Hewlett-Packard (HPQ) have been under pressure throughout the year.
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.
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Running the fiscally challenged state of California might have been an easier task for Meg Whitman than trying to turn around Hewlett-Packard.
That's what she would be doing right now if she hadn't lost the Golden State gubernatorial race to Jerry Brown in 2010. Alas, she has to "settle" for the more lucrative but arguably more thankless job as CEO of troubled HP.
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Stupid Stock Move of the Day! Nvidia up 7%?
#StupidStock Move of the day! $NVDA up 7% on $MSFT Surface tablet inclusion? Yes, it's good. But what if Surface is more Kin/Zune than Xbox?— Paul R. La Monica (@LaMonicaBuzz) June 19, 2012
On the Surface, Microsoft's (MSFT) new tablet is a boon for graphics chipmaker Nvidia (NVDA). But I'm a little surprised the stock is up this much on the news. Considering that we don't yet know when the Surface MORE
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