AMD released preliminary third-quarter figures on Thursday that far fall short of its original projections.
The semiconductor business announced an initial $5.6 billion in quarterly revenue. Initial estimates for the quarter’s revenue ranged from $6.7 billion to $6.7 billion plus or minus $200 million. Additionally, AMD stated that it now anticipates its non-GAAP gross margin to be around 50%, down from its prior expectation of a gross margin closer to 54%.
In after-hours trade, shares decreased by nearly 4%.
A “weaker than expected PC market and considerable inventory adjustment measures across the PC supply chain,” according to AMD, were the main causes of the deficit.
AMD previously provided a projection for Q3 in its most recent quarterly earnings report that was below what Wall Street anticipated.
According to the business, AMD’s Client sector revenue was roughly $1 billion, a 40% decrease from the previous year. About $1.6 billion in revenue was generated by its gaming section for the quarter, up 14% year over year, and a similar amount by its data centre division, up 45% year over year.
About $1.3 billion was created by the growth of its Embedded division, which was principally brought on by earlier this year’s acquisition of Xilinx.
Sales of $5.6 billion as a whole were up 29% compared to Q3 2021 but down 15% from the previous quarter.
The stock has fallen nearly 53% overall this year, while the S&P 500 has fallen more than 21%.