AMD Cuts Revenue Forecast Amid Worst Slump in PC Shipments in Years

AMD already had issued a subdued outlook in August for the current quarter with a projection of roughly $6.7 billion in sales that fell short of Wall Street projections at the time.

Sales in the third quarter are expected to be down 15% from the prior quarter, though up 29% from the year-ago period. 

“The PC market weakened significantly in the quarter,” AMD Chief Executive

Lisa Su

said. “While our product portfolio remains very strong, macroeconomic conditions drove lower-than-expected PC demand and a significant inventory correction across the PC supply chain,” she added. 

AMD shares fell more than 3% in after-hours trading Thursday. 

PC shipments are suffering some of their steepest declines in years after elevated sales were followed by a slowdown in consumer spending on electronics, including PCs and smartphones.

AMD’s main competitor,

Intel Corp.

, posted an unexpected loss in the second quarter on its biggest revenue decline in more than a decade. Like AMD, Intel cited PC slowness as the main culprit, forecasting a 10% drop in overall sales of those computers this year.

Gartner

and other analysis firms have projected similar declines in the market.

Qualcomm Inc.,

a supplier of chips for mobile phones, cut its smartphone-shipment forecast and gave a muted sales outlook in July. Memory-chip maker

Micron Technology Inc.

last week issued another subdued revenue outlook after failing to meet its sales expectations in the latest quarter, linked to the doldrums in the PC and smartphone markets.

—Will Feuer contributed to this article.

Write to Asa Fitch at [email protected]