fall@ (Adds estimates, revenue, background)
July 30 (Reuters) - Advanced Micro Devices Inc forecast third-quarter revenue below Wall Street estimates on Tuesday, as the U.S. chipmaker sees lower demand for its chips used in gaming consoles, sending its shares down 7% in extended trading.
AMD expects revenue of about $1.8 billion, plus or minus $50 million. Analysts on average had expected revenue of $1.95 billion, according to IBES data from Refinitiv.
The chip industry is in a slowdown, with research firm Gartner forecasting a 9.6% drop in global semiconductor revenue in 2019 to $429 billion. U.S.-China trade tensions, including tariffs on some products and the restrictions on sales to Huawei, are pressuring chipmakers.
AMD said sales in its graphics and computing business fell 13% to $940 million, missing FactSet estimates of $983 million due to lower graphics channel sales, partially offset by increased client processor and datacenter graphics processing units sales.
AMD's gaming chips will feature in Microsoft's next-generation Xbox console as well as Sony's PlayStation 5.
The company's net income fell to $35 million, or 3 cents per share, in the second quarter ended June 29, from $116 million, or 11 cents per share, a year earlier.
Excluding items, AMD earned 8 cents per share, in-line with analysts estimates.
Revenue declined 12.8% to $1.53 billion. Analysts on average had expected revenue of $1.52 billion, according to IBES data from Refinitiv. (Reporting by Arjun Panchadar in Bengaluru; Editing by Sriraj Kalluvila, Bernard Orr)