AMD Stock Sheds Another 10% on Weak PC Outlook
Analyst predictions of a declining PC market for this year are showing their impact on stocks.
AMD was hardest hit with a decline of more than 13 percent on Friday, sending the stock down 42 cents to $2.78. Adding to the recent slide in value, AMD is now listed with a market capitalization of just $1.96 billion.
AMD also warned investors that it expects its Q3 revenue to show a 10 percent sequential decline, which is worse than the previously forecast 1 percent, indicating AMD's substantial exposure to the current deteriorating economic climate for the PC industry.
According to AMD, "the lower than anticipated preliminary revenue results are primarily due to weaker than expected demand across all product lines caused by the challenging macroeconomic environment." Margins were impacted by lower than expected average processor selling prices, the company stated.
Intel has also been hit. The company did not show a massive hit, but Intel's stock continued its downward spiral, which began in April of this year at a peak of $28.38. Intel shares are down more than 20 percent since then and currently trade for $21.45, giving Intel a market cap of about $107 billion. Other indicators in the PC market such as Microsoft, have also suffered recent stock declines, despite the upcoming launch of Windows 8.
AMD said it will discuss its Q3 result on October 18 after stock market close.