AMD Posts Soft Second Quarter; Headwinds Continue
Advanced Micro Devices Inc. reported dismal second-quarter results and said the weakness would continue into the current period as the chip maker is hurt by softening consumer demand for PCs, particularly in China and Europe.
Demand for semiconductors has been shaky in the past few quarters amid global economic woes, weaker consumer spending and shortages of hard-disk drives following flooding in Thailand. AMD has struggled more than larger rival Intel Corp., cutting its guidance last week because of lower-than-expected sales in China and Europe. The company is particularly sensitive to soft consumer PC demand, while Intel has been buoyed by its strength in data centers.