- Investors continued to sell shares of AMD on Friday after the chipmaker issued weak preliminary third-quarter results.
- AMD pointed to slumping PC demand and overall supply chain issues.
- Shares of other chipmakers, including Intel and Nvidia, were also down.
AMD shares were down 13.9% on Friday as investors digest the company's disappointing preliminary third-quarter results Thursday that were well below its initial guidance.
The chipmaker cut its sales forecast on Thursday for the third quarter, blaming a larger-than-expected decline in the personal computer market and supply chain issues.
AMD now expects preliminary quarterly revenue of about $5.6 billion thanks to "reduced processor shipments." That's more than $1 billion below the $6.7 billion it had previously forecast as the midpoint of its revenue expectations for the quarter.
Get Southern California news, weather forecasts and entertainment stories to your inbox. Sign up for NBC LA newsletters.
The company also said its non-GAAP gross margin is expected to come in around 50%, while it had previously expected gross margin to be closer to 54%.
Several firms, including Piper Sandler, Stifel, KeyBanc Capital Markets and Mizuho Securities cut their price targets for AMD in notes to clients Friday, though each of those maintained a buy or overweight rating.
Shares of other chipmakers like Intel and Nvidia were also down, more than 5% and 8%, respectively, as weak PC demand and supply chain issues could weigh on other semiconductor players.
Money Report
WATCH: AMD's third quarter cut was deeper than the market expected, says Bernstein's Stacy Rasgon