Why Advanced Micro Devices Fell 5.2% in October
Shares of Advanced Micro Devices (NASDAQ: AMD) fell 5.2% in October, despite the overall S&P 500 increasing 8%, according to data from S&P Global Market Intelligence. AMD faced a slew of headwinds during the quarter, including a cratering PC market and the unveiling of new restrictions on advanced semiconductor sales to China. The stock took a big downturn when it pre-announced third-quarter revenue and earnings that missed the mark by a wide margin.
On Oct. 6, AMD management pre-announced its third-quarter results as revenue and earnings wound up coming in far below their projections on the second-quarter conference call. Typically, when there is a wide gap between prior guidance and what actually happens, a company will pre-announce.
In the case of AMD, it pre-announced third-quarter revenue of $5.6 billion versus prior guidance of $6.7 billion, needless to say, a pretty wide chasm. Strikingly, the shortfall occurred really in one segment, the PC market, which came to an absolute standstill during the second half of the summer.
Source Fool.com
