Chip maker Advanced Micro Devices is tanking, down 18.2%, or $2.48, at $11.14 a share, after giving a disappointing gross margin forecast. The company expects second quarter gross margins to come in at about 33%, down slightly from the first quarter reading of 34%.
AMD announced an adjusted loss of $0.04, matching the Wall Street consensus. Revenue rose 18.3% to $984 million, a whisker below the $984.46 that analysts were anticipating.
“We achieved 18 percent year-over-year revenue growth driven by strong demand for our high performance Ryzen CPUs as well as graphics processors,” Dr. Lisa Su, AMD president and CEO, said in the earnings release.
“We are positioned for solid revenue growth and margin expansion opportunities across the business in the year ahead as we bring innovation, performance, and choice to an expanding set of markets.”
Shares of AMD are down about 2.7% year-to-date taking into account Tuesday’s losses.