With shares of AMD down 40 percent from their high in March, it’s hard to call this a surprise. In fact, we have been talking about it since April. But here it is anyway: AMD’s (NYSE:AMD) second quarter revenues were less than expected due to ongoing price competition from Intel (NASDAQ:INTC), along with a solid reception for Intel’s newest chips.
AMD today announced that sales for the second quarter ended July 2, 2006 are expected to be approximately $1.215 billion — a 52 percent increase compared to the second quarter of 2005 and a nine percent decline compared to the first quarter of 2006. The company’s prior guidance for the second quarter anticipated overall sales to be flat to slightly down seasonally from the first quarter of 2006.
We hate to bottom fish here given our outlook toward semiconductors. So for now, we’re just sticking with the “no surprise.”
AMD-INTC 1-yr comparison chart: