AMD (NASDAQ:AMD) issues cautious Q2 revenue forecast amid sluggish chip demand
Full story: https://grafa.com/news/amd--nasdaq-amd--issues-cautious-q2-revenue-forecast-amid-sluggish-chip-demand-216177
Advanced Micro Devices (NASDAQ:AMD), the world's second-largest computer processor manufacturer, provided a cautious revenue outlook for the upcoming quarter, reflecting slow demand for its video game hardware chips.
The company anticipates second-quarter revenues to be around $5.7 billion, slightly below the average analyst estimate of $5.72 billion.
AMD's gaming division revenue fell short of expectations last quarter, a downturn the company hopes to counterbalance with its new initiative in artificial intelligence accelerators.
These Nvidia Corp.-style chips, designed to support the development of chatbots and other AI tools, are expected to make a significant financial impact.
Despite the optimistic outlook on AI, AMD shares dropped as much as 6.5% in premarket trading following the announcement, after closing at $158.38.
AMD's cautious revenue forecast follows a similar downbeat projection from its larger rival, Intel Corp., which also anticipates continued sluggish demand through the first half of the year.
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- Grafa·05-01Read the full story https://grafa.com/news/amd--nasdaq-amd--issues-cautious-q2-revenue-forecast-amid-sluggish-chip-demand-2161771Report