SUNNYVALE, Calif.-Chipmakers Advanced Micro Devices Inc. and STMicroelectronics suffered a beating on Wall Street following warnings of sluggish earnings and margins.
AMD announced its revenues for the fourth quarter will be up slightly from the $1.2 billion it reported in the third quarter, but its operating income will be down “significantly” from its $68.4 million in the third quarter. The company blamed the decline on challenges in the flash memory market. The news caused four separate investment firms to downgrade their ratings on the company.
AMD’s stock was down almost 22 percent on the news to around $15.70 per share.
Separately, STM said its revenues for the fourth quarter will be $2.3 billion, at the high end of its estimates, but its gross margin will be 36.6 percent, down from its expected range of 38 to 39 percent. The company blamed currency exchange rates for the decline.
STM’s stock was down about 5 percent following the news to about $17.77 per share.
