Advanced Micro Devices (AMD) stock dropped as much as 9% in extended trading on Tuesday after the firm disclosed a net loss for the March quarter. Its current-quarter guidance also fell short of expectations due to a sluggish PC market.
AMD recorded a net loss of $139 million during the quarter, compared to a net profit of $786 million the previous year. Revenue fell 9% year on year to $5.35 billion, but it was still somewhat higher than the $5.3 billion forecast.
The biggest fall was in AMD’s client segment, which includes PC processor sales. This segment’s sales were $739 million, a 65 percent decrease from the $2.1 billion reported during the same period the prior year.
According to CEO Lisa Su, the company expects “growth in the second half of the year as the PC and server markets strengthen.”
“We remain confident in our ability to grow in the second half of the year,” she added.
Su expects the MI300 processor, which will compete with NVIDIA Corp.’s flagship artificial intelligence chips, to contribute to that increase. Su stated that customer interest in the chip is increasing.
AMD expects revenue in the current quarter to be around $5.3 billion, plus or minus $300 million. Refinitiv surveyed analysts predicted $5.48 billion in revenue.
After hours of trading, AMD shares closed with a 7 percent decline.