AMD Stock Sheds Another 10% on Weak PC Outlook

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.

 

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  • tomfreak
    I am still getting rip off in my region = Malaysia, yes a place where most CPUs are assembled. A FX8150 cost as much as a 2600K/3770K, thats pretty much no reason to buy AMD FX CPU here, AMD why dont do some homework put a better pricing/performance across the world. If u dont, then I think u deserve this stock falling.

    and...Please thumb me down AMD fanboys.
    20
  • willard
    Right about now might be a good time to buy AMD stock. Wait for the Q3 earnings report, let AMD take another 10% hit and snap up the shares at a bargain. AMD is looking very good in the ultrathin market, offering lower prices and superior GPU performance over Intel chips.

    Quote:
    Margins were impacted by lower than expected average processor selling prices, the company stated.

    Yeah, that will happen when your top of the line processor competes (poorly) with your rival's 18 month old mainstream chip. Fix your IPC regression and maybe you can charge $200+ for your chips again. Stop throwing more cores at the problem and give me decent single threaded performance again.
    15
  • Other Comments
  • tomfreak
    I am still getting rip off in my region = Malaysia, yes a place where most CPUs are assembled. A FX8150 cost as much as a 2600K/3770K, thats pretty much no reason to buy AMD FX CPU here, AMD why dont do some homework put a better pricing/performance across the world. If u dont, then I think u deserve this stock falling.

    and...Please thumb me down AMD fanboys.
    20
  • southernshark
    Unfortunately it is very common outside of the consumer nations for prices to be considerably higher. I live in Guatemala and everything is about 50 percent more than the Continental USA.
    3