AMD shares plummeted as results in the third quarter were weak

According to news in the morning of October 8, Beijing time, AMD shares fell 13.9% on Friday. The company recently reported disappointing preliminary results for the third quarter, which were well below its previous outlook.

AMD cut its third-quarter sales forecast on Thursday due to a sharper-than-expected decline in the PC market and problems in the supply chain. AMD now expects third-quarter revenue of about $5.6 billion, down more than $1 billion from the median revenue outlook of $6.7 billion, mainly due to a "decline in processor shipments." AMD also said that non-GAAP gross margins were expected to be about 50 per cent, compared with previous expectations of close to 54 per cent.

A number of research institutions, including Piper Sandler, Stifel, KeyBanc Capital Markets and Mizuho Securities, downgraded AMD's target share price in research notes sent to clients on Friday, but maintained a "buy" or "overweight" rating.

Shares of other chipmakers, such as Intel and Nvidia, also fell, falling more than 5 per cent and 8 per cent, respectively. Weak demand in the PC market and supply chain problems have also put pressure on these chip companies.