Ahead of the Bell: AMD
(Associated Press Via Acquire Media NewsEdge) NEW YORK (AP) — Advanced Micro Devices Inc. tumbled 11 percent before Friday's opening bell after the microchip maker experienced a steep decline in sales of chips for notebook computers.
Like other chipmakers, AMD has struggled in recent years amid weak PC sales. The company has shifted its focus to other segments, such as tablets, game consoles and cloud servers, for growth.
The company posted quarterly results late Thursday, which adjusted for one-time items, were in line with Wall Street predictions. AMD also said that it expects its fourth-quarter revenue to increase 5 percent, plus or minus 3 percent, over its third-quarter revenue.
Citi analyst Glen Yeung lowered his price target by 50 cents to $4.50, but backed his "Neutral" rating for the stock. He said that while the earnings and guidance didn't fall short, investors probably expected better results as a result of the pickup in the company's gaming business.
"With momentum now seasonally slowing, we find little reason to become excited about AMD at this time," Yeung wrote.
In premarket trading, shares of Advanced Micro Devices Inc. slid 47 cents to $3.62.
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