AMD Shares Hit 52 Week Low on Weak Sales Data
AMD (NYSE:AMD) shares are getting crushed after issuing revised and lower guidance for its 3Q, saying gross margins are expected to be in the range 44-45% against the previously expected 47%. Also, revenue will expand by just 4-6% quarter-over-quarter, instead of the earlier guidance of 8-12%.
The downshift in guidance is due to problems with its 32 nm line at a German plant which caused bottlenecks in the supply of “Llano”. The Llano product and its associated products enjoy better sales realizations. AMD is working with GlobalFoundries, the German partner to resolve these problems.
AMD’s (NYSE:AMD) stock is trading at $5.46 today, down 11.22%. Shares are down 15.52% in one year. The stock’s trading range for the year is between $5.46 and $9.58.