AMD warns of revenue shortfall in Q3 due to weak PC demand, supply chain issues

AMD export Preliminary results for the third quarter on Thursday which is much less than the initial routing.

The company reported preliminary quarterly revenue of approximately $5.6 billion. It had initially said it expected revenue of $6.7 billion for the first quarter, plus or minus $200 million. AMD also said its non-GAAP gross margin is expected to be around 50%, while it previously forecast it to be closer to 54%.

Shares fell more than 3% in after-hours trading.

AMD said the shortage was a combination of “a weaker-than-expected PC market and significant inventory corrections across the PC supply chain.”

In its recent quarterly earnings results, AMD had already given a forecast for the third quarter of that year It was less than expected on Wall Street.

The company said revenue from the AMD customer segment was about $1 billion, down 40% year-over-year. The company’s gaming segment generated approximately $1.6 billion in revenue, up 14% year over year, and its data center business also generated approximately $1.6 billion in sales for the quarter, up 45% year over year.

Boost in AMD’s Embedded Works, which is basically a result Get Xilinx Earlier this year, it made about $1.3 billion.

In total, sales of $5.6 billion are up 29% compared to the third quarter of 2021 but down 15% from the last quarter.

Overall, the stock is down about 53% for the year while the S&P 500 is down more than 21%.