Advanced Micro Devices Falls on Lowered Outlook

Semiconductor manufacturer Advanced Micro Devices AMD cut its second-quarter revenue guidance on Monday after the closing bell. The company cited adverse business conditions in the latter part of the second-quarter, specifically softer-than-expected channel sales in China and Europe and a weaker consumer environment. The company now sees a second-quarter sequential revenue decline of around 11% versus its previous guidance of an increase of 3%, plus or minus 3% on a sequential basis. Currently, Wall Street analysts are projecting that AMD will report $1.63 billion in revenue for the second-quarter. AMD also reiterated its prior gross margin guidance and said that operating expenses will be approximately 8% less than its prior guidance of approximately $605 million. In Monday's after-hours trading session, AMD shares had lost nearly 7% to $5.24.