AMD Follows TI With Dour Sales Forecast, Adding to Chip Woes
- Decline in extended trading comes after industry sell-off
- Revenue from graphic chips disappoints as resellers cut orders
Photographer: Ashley Pon/Bloomberg
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Advanced Micro Devices Inc. added its name to a growing list of semiconductor companies that were battered with huge share declines after reporting disappointing results and forecasts. The stock slumped 20 percent in early trading Thursday.
AMD’s results came on a day when investors were already pressing the sell button on a sector that many now fear is signaling a wider technology industry downturn. The Philadelphia Stock Exchange Semiconductor Index dropped 6.6 percent Wednesday after Texas Instruments Inc., which has the largest number of customers and the broadest product range in the chip industry, warned that demand is slowing across many of its markets.