Chipmaker AMD cuts revenue estimate, citing weak PC sales

(Reuters) - U.S. chipmaker Advanced Micro Devices Inc (AMD.O) lowered its revenue estimate for the second quarter, below analysts' average expectation, saying the demand for personal computers was weaker-than-expected.

AMD's shares fell as much as 15 percent to $2.10 in extended trading, after the company also cut its adjusted gross margin forecast for the quarter ended June 27.

The company said it expects revenue to have decreased about 8 percent from the first quarter, compared with its previous forecast of down 3 percent, plus or minus 3 percent.

This implies revenue of about $948 million. Analysts were expecting $999.6 million, according to Thomson Reuters I/B/E/S.

The Sunnyvale, California-based company also cut its forecast for second-quarter adjusted gross margin to about 28 percent, as weak demand from PC makers also hurt sales of its new chip which combine both computing and graphic processing capability.

AMD had previously forecast margins of about 32 percent.

The company warned in April that it expected weak demand for personal computers to continue for some time as original equipment manufacturers focus on lean inventories.

The company said on Monday it expects gross margin to be hit by a one-time charge of about $33 million associated with a transition from 20 nanometer chip-making technology to FinFET.

AMD will report second-quarter results after market close on July 16.

The stock had fallen about 14 percent through Monday's close since the company reported results in April.

(Reporting By Lehar Maan in Bengaluru; Editing by Don Sebastian)