AMD stock is on the course of its worst day decline in more than a decade after its second-quarter.
The stock fell as much as 21%, the biggest intraday droop since January 2005. The company, which has spent months touting the ability of its new Zen design, reported sales fell short of some projections.
The first Zen generation, which is Ryzen, has been sold in the last month of the first quarter. Financial reports released on Monday did not have enough information to prove that Ryzen would reach expectations, which helped raise prices of AMD’s stock four times last year.
According to Sunnyvale (California), this quarter’s revenues rose 17%, +/- 3%, reaching $984 million. This report also indicated that sales of about $1.15 billion, compared with the average estimates of $1.12 billion. According to AMD, gross margins (% of sales after deduction of production costs) reached 33%.
“While it is taking a solid step on Ryzen’s footsteps, AMD’s first quarter results have not yet reached a high level of expectations. Stocks are the best thing to do. Their opportunity is closing down because Intel is expected to launch new product lines in months coming, “said Srini Pajjuri, an analyst at Macquarie Capital.
AMD’s first quarter net loss was $ 73 million, or 8 cents per share. This is a positive result compared to a loss of $ 109 million or 14 cents per share of the same period last year. This performance is also quite close to analyst expectations for a loss of 7 cents per share.
AMD is the second largest maker if graphics processors used in add in cards for gamer PCs, after Nvidia. It’s also in the process of rolling out new designs for the market.