Semiconductor giant AMD has followed Intel’s example in warning investors of its belief that the growth experienced by the prospering PC market will dip rapidly in the third quarter. The company announced during an earnings call with investors on Tuesday night that it has adjusted its Q3 projections for the company’s PC business accordingly.
“So a quarter ago, we would have thought that the PC business would be down, let’s call it high-single digits [percentage]. And our current view of the PC business is that it will be down, let’s call it mid-teens [percentage],” CEO Dr. Lisa Su explained to those present.
AMD’s updated sales forecast for the third quarter lies within the range of $6.5 billion to $6.9 billion, with a third-quarter gross profit margin projection of 54%. AMD’s stock dipped by 5% during pre-market trading on Wednesday.
By making this announcement, AMD is following in the footsteps of rival chip giant Intel; which told its investors to expect the PC market to plunge by 10% by year’s end. Intel’s stock tanked by 10% on Friday following this announcement.