AMD stock plungesNo. 2 chip maker's shares drop after warning fourth-quarter revenue would come in below estimates.NEW YORK (CNNMoney.com) -- Advanced Micro Devices Inc. stock tumbled Friday morning after the company warned fourth-quarter revenue would fall short of analysts' estimates. AMD (down $2.30 to $17.88, Charts) shares tumbled nearly 12 percent in midday trading on the New York Stock Exchange. Volume was heavy. The nation's No. 2 maker of computer chips said late Thursday that it now expects revenue in the fourth quarter to rise about 3 percent from the third quarter, implying revenue of about $1.37 billion. Analysts had been expecting AMD to have fourth-quarter revenue of $1.84 billion. In its statement issued Thursday evening, the Sunnyvale, California-based chip maker cited large declines in its average chip selling. AMD also said fourth-quarter operating income, excluding acquisition-related charges and other items, would be substantially lower than in the third quarter. Shares of chip makers in the technology sector were mixed. Stock of AMD's rival in the processor business Intel Corp. (down $0.07 to $21.85, Charts) edged lower while Actel Corp. (up $0.08 to $18.19, Charts) and Micron (up $0.25 to $14.13, Charts) shares edged higher. |
|
