AMD forecasts current-quarter revenue largely below estimates

(Reuters) -Advanced Micro Devices Inc on Tuesday forecast third-quarter revenue largely below estimates, sending the chip designer’s shares down 5%.

The company expects revenue of $6.7 billion, plus or minus $200 million, compared to analysts’ estimate of $6.82 billion, according to IBES data from Refinitiv.

Runaway inflation and the reopening of offices and schools have led people to spend less on PCs than they did during lockdowns, hurting firms like AMD, which is among the largest suppliers of central processing units (CPUs) and graphics processing units (GPUs) chipsets.

Chipmakers are also under pressure from a spate of COVID curbs in key PC market China and the Ukraine war that have worsened supply-chain snarls and dragged demand further. Global shipments of PCs are expected to drop 9.5% this year, according to IT research firm Gartner.

Revenue in the second-quarter rose 70% to $6.55 billion, inching past analysts’ estimate of $6.53 billion, according to IBES data from Refinitiv.

(Reporting by Yuvraj Malik in Bengaluru; Editing by Maju Samuel)

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