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What: Shares of Advanced Micro Devices (NYSE: AMD ) got crushed today, down by 11% at the low, after primary rival Intel (NASDAQ: INTC ) reported disappointing results that indicate continued weakness in the PC market that AMD also relies on.
So what: Intel's outlook was one of the big culprits rattling investors today, with the chip giant forecasting full-year 2013 revenue growing in the low single digits. Its fourth-quarter revenue was down approximately 3%, and AMD's top line has always correlated with Intel's since both companies predominantly make PC processors.
Now what: Investors are rightfully afraid that AMD's own results may be just as disappointing, if not worse. The smaller chip maker reports its fourth-quarter results next week on Tuesday, which is the very next trading day, as markets are closed on Monday in observance of Martin Luther King, Jr. Day. Analysts are expecting AMD to put up revenue of $1.15 billion with a loss per share of $0.20. Investors are bracing themselves for a possible miss.
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