AMD blamed a manufacturing glitch for its miss, and the new target is 4% to 6% growth versus a prior target of closer to 10% sequential growth. Gross margin will also fall to about 44% to 45% rather than a 47% target previously offered. The blame lies with the Globalfoundries plant in Germany.
Having a fab-lite model is great, when the factories are working properly. In this case, not so much.
AMD shares are down 9.4% at $5.57 in pre-market trading and the stock has traded more than 3 million shares with an hour until the open. The prior 52-week low was $5.60.
JON C. OGG
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