The bond market has entered a financial twilight zone, and at this point, there doesn't seem to be a smooth way out.Market Insiderread more
President Donald Trump said on Twitter he was postponing a scheduled meeting with Denmark's prime minister because of her lack of interest in discussing a possible sale of...World Politicsread more
China has used both monetary and fiscal measures to lift economic activity as its trade war with the U.S. looks set to intensify in the coming months.China Economyread more
The two countries want to smash the civil aerospace duopoly enjoyed by Airbus and Boeing.Aerospace & Defenseread more
Federal Reserve Chairman Jerome Powell is set to deliver his annual speech on Friday at the Jackson Hole, Wyoming symposium, where he's expected to provide more clarity on the...Asia Marketsread more
After Elon Musk touts Tesla solar on Twitter, Walmart sues the electric vehicle and clean energy company over store rooftop panels that ignited.Technologyread more
U.S. and Asian investors poured $3.7 billion into U.K. tech start-ups in the first seven months of 2019, research shows.Technologyread more
Trump said he has "been thinking about payroll taxes for a long time" — and he cautioned that "whether or not we do something now, it's not being done because of recession."Politicsread more
Secretary of State Mike Pompeo privately told business executives and free traders that the trade war could end by the 2020 election and that hurdles to an immediate agreement...2020 Electionsread more
Market bull Jeff Saut told CNBC on Tuesday that the lows are in and the market is headed "much higher."Marketsread more
Home Depot CFO Carol Tome says "consumer confidence is near record high levels" but "consumer demand could be impacted" by lingering U.S.-China trade tensions.Mad Money with Jim Cramerread more
(Adds CEO quote from conference call, details on quarter; updates shares)
July 30 (Reuters) - Advanced Micro Devices Inc forecast third-quarter revenue below Wall Street estimates on Tuesday, hit by lower demand for its chips used in gaming consoles and sending its shares down 4% after the closing bell.
Gamers are delaying purchases of current models of Microsoft Corp's Xbox One console and Sony Corp's PlayStation 4 as both are considered out of date. Next-generation devices are expected to launch next year and will be powered by AMD chips.
"People assumed game consoles would be normal seasonally. We previewed the quarter and said this business would be weaker because it is the end of this seven-year product cycle," Rosenblatt Securities analyst Hans Mosesmann said.
The company also trimmed its 2019 revenue forecast to grow at a mid-single digit percentage, rather than high-single digits seen earlier as growth in its Ryzen, EPYC and Radeon processors offset lower-than-expected semi-custom revenue.
Sales in AMD's enterprise, embedded and semi-custom segment fell 12% in the second quarter to $591 million, but higher sales of its EPYC server processor helped the segment beat FactSet estimates of $544.3 million.
AMD expects revenue of about $1.8 billion, plus or minus $50 million for the three months ending September. Analysts on average had expected revenue of $1.95 billion, according to IBES data from Refinitiv.
The chip industry has been pressured, 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 squeezing chipmakers.
AMD said it saw some uncertainties across its supply chain driven by tariffs, trade concerns and the U.S. entities list.
"In the second quarter, we stopped shipping to customers added to the U.S. entities list." AMD Chief Executive Officer Lisa Su said on a post-earnings call, adding that any impact from it was limited. AMD re-entered the server chip market with EPYC chips in 2017, tapping into a booming market as the shift to cloud encourages Amazon.com, Microsoft and Alphabet Inc's Google to invest billions of dollars to set up state-of-the-art data centers.
Since then, the company has chipped away at Intel's dominant position in the server chip market.
AMD launched its 7 nanometer-based Ryzen 3000 desktop CPUs and 7nm-based Navi gaming GPU earlier this month. AMD will launch its next-generation EPYC server processors called "Rome" in the third quarter.
In the quarter ended June 29, net income fell 69.8% to $35 million. Excluding items, it earned 8 cents per share, in line with estimates.
Revenue fell 12.8% to $1.53 billion, edging past estimates of $1.52 billion. (Reporting by Arjun Panchadar in Bengaluru; Editing by Bernard Orr and Sriraj Kalluvila)