AMD Drops Most Since July After Outlook Misses Estimates

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Advanced Micro Devices Inc. fell the most since July after the chipmaker’s revenue forecast fell short of analysts’ estimates.

Second-quarter revenue will be between $968.2 million to $1.03 billion, the Sunnyvale, California-based company forecast Thursday in a statement after markets closed. Analysts had predicted $1.14 billion, according to 23 estimates compiled by Bloomberg.

“It’s hard to call that the market will be substantially better in the second half than the first,” Chief Executive Officer Lisa Su said on a conference call Thursday.

AMD shares slid 10 percent to close at $2.58 on Friday as the Nasdaq Composite Index fell 1.5 percent amid a broad decline for stocks.

AMD is trying to break away from more than 40 years as a cheaper alternative to Intel Corp., the world’s largest chipmaker. Sales from custom chips that AMD sells for video-game consoles such as Sony Corp.’s PlayStation and Microsoft Corp.’s Xbox haven’t made up for falling demand for personal-computer processors.

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