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AMD shares dip 13 percent on revised forecast

by on30 September 2011

32nm transition issues cost shareholders dearly
AMD shares dipped 13 percent after the chipmaker cut its quarterly forecast on Thursday.

The pessimistic forecast sees AMD failing to meet its growth target in Q3 due to poor 32nm yields and ramp issues faced by the Globalfoundries fab in Dresden.

Although analysts agree demand for 32nm Llano APUs is healthy, AMD is simply falling behind schedule due to production difficulties. Sadly, while other companies are slashing forecasts as a result of poor demand, AMD finds itself in the awkward position of being unable to meet demand.

It is unclear whether the issues will in any way affect the introduction of upcoming Llano SKUs, although this doesn’t seem very likely at this point. AMD is working closely with Globalfoundries to improve yields and claims to be making headway.
Last modified on 30 September 2011
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