Shares of Advanced Micro Devices (NASDAQ:AMD) shares were trading more than 10% lower Friday morning following the company’s preannounced Q3 results.
Preliminary revenue was $5.6 billion, representing a significant miss compared to the company’s guidance midpoint of $6.7 billion and the Street estimate of $6.69 billion. The gross margin is expected to be around 50%, compared to their previous 54% estimate.
Reduced revenue estimates are a result of lower-than-expected Client segment revenue due to reduced processor shipments given the weaker-than-expected PC market and significant inventory correction actions across the PC supply chain. On the positive side, Data Center, Gaming, and Embedded segments’ revenues were In line with the company’s expectations.