AMD lowers 4Q revenue expectations

Advanced Micro Devices (AMD) announced today that their fourth-quarter revenue would be much weaker due to widespread weakness particularly among customers. Shares have recovered much of the 8percent premarket drop, but investors and analysts are seemingly unfazed.

Cody Acree, an analyst with Stifel Nicolaus said, “the market was not surprised given the state of the PC industry, which is being crippled by poor demand.” AMD along with rival Intel have made virtually all the microprocessors for the world’s 1 billion PCs. Acree went on to say AMD has done a great job of making itself a better competitor to Intel. I think this has nothing to do with AMD individually, this is fully macro.”

AMD is expecting revenue from operations ending December 27th, to decline around 25 percent in the 3Q to around 1.19 billion. The average 4Q analyst revenue estimate is 1.53 billion according to Reuters Estimates. Earlier this year AMD cut 500 out of the 15,500 jobs to try and cut costs.