AMD joins Intel with disappointing Q2 results

AMD posted its second quarter financial results today, and like Intel's, its results have turned out below expectations. Revenue was $1.22 billion in the second quarter, down from an expected $1.3 billion and the previous quarter quarter's $1.33 billion. While Intel hit an almost three-year low, AMD has actually climbed overall since last year, when it posted second quarter revenue of $0.80 billion (excluding its memory division, which has split from the company.) Similarly, AMD's operating income saw a year-over-year rise, even though it sunk from the previous quarter's $259 million to $109 million.

AMD also enjoyed 56.8% margins, a 1.2% year-over-year drop but still a step above Intel's reported 52.1%. Margins could shrink for AMD if it ends up implementing the drastic price cuts that leaked out earlier this week, though. Intel is in the same boat with a barrage of rumored price cuts that could explain the 1-5% margin drop the company expects for the third quarter. Despite possible cuts, though, both AMD and Intel expect revenue to increase in the third quarter.

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