(Reuters) – Advanced Micro Devices forecast second-quarter revenue below estimates on Tuesday, as weakness in demand for chips used in data centers and networking equipment weighs.
Enterprise, cloud, and China server customers have been cutting orders, with AMD-rival Intel expecting data center demand to decline throughout the first half of the year and recover only moderately in the second half. The weakness is also pronounced amid US cloud customers, analysts said.
Moreover, order cuts by networking equipment makers have also cast a shadow over demand for products by Xilinx, the data center and networking chip company AMD acquired last year.
AMD forecast current-quarter revenue of about $5.3 billion, plus or minus $300 million. Analysts polled by Refinitiv were expecting revenue of $5.48 billion.
Revenue in the quarter ended April 1 came in at $5.35 billion, compared to estimates of $5.30 billion.
(Reporting by Chavi Mehta in Bengaluru; Editing by Maju Samuel)
