AMD Chips Struggle Amid Decrease In PC Market Demand

By: Bill Waters
Staff Writer
Published: Dec 7, 2008

AMD has slashed its fourth quarter sales outlook due to a decrease in demand for AMD chips. The technology company expects sales to be 25 percent lower. AMD shares dropped 5 percent following the announcement.

Advanced Micro Devices Inc has slashed its fourth quarter sales outlook due to a decrease in demand for AMD chips. The widespread weakness will hit AMD sales by 25 percent.

"The decrease is due to weaker than expected demand across all geographies and businesses, particularly in the consumer market," AMD said in a statement.

AMD chip sales are being hit hard by lower demand. Despite the news, AMD shares recovered as much as 8 percent. Analysts say that investors are now accustomed to the steady decrease in the PC technology sector.

Intel Corp and AMD make virtually all microprocessors in the world. Some analysts have stated that AMD has done a solid job of making itself more competitive with Intel. Intel has also slashed its fourth quarter outlook.

AMD posted a third-quarter loss of $67 million on sales to almost $1.6 billion. Wall Street expects AMD to post revenue of $1.53 billion for the quarter.