AMD Cuts Its Full-Year Guidance
Advanced Micro Devices (NASDAQ: AMD) saw its revenue slump in the second quarter thanks to weak graphics card sales and lower semi-custom sales. This decline was expected -- excess inventory from the cryptocurrency bubble has hurt graphics card sales this year, and the major AMD-powered game consoles are nearing the end of their life cycles.
What wasn't expected was a guidance cut. AMD now expects to grow revenue by a mid-single-digit percentage this year, down from earlier guidance calling for a high-single-digit percentage increase. The company launched new Ryzen PC CPUs and Radeon graphics cards in early July, and its second-generation EPYC server chips are due this year. These products will drive growth in the second half, just not enough for AMD to hit its original outlook.
Weak sales of consumer graphics cards overpowered higher sales of CPUs and data-center graphics cards, leading to a double-digit revenue decline.
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