AMD, Advanced Micro Devices Inc. takes a dive after Q2 loss

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The market responded quickly and steeply today as Advanced Micro Devices Inc. reported a Q2 loss and lower revenue.

Falling more than 12% to $3.56, as some analysts forecast (or wondered) if even though the company is striving to be more nimble, they remains a troubled competitor.  Add to those forecasts the Q2 loss, and the recipe for a loss is easily understood.

"We maintain our neutral stance on shares of AMD and believe the company mistakenly took a wrong turn on the road to recovery," said analyst Patrick Wang.

"This unfortunate set of events will take a few quarters to correct and, more importantly, reveals some of the company’s vulnerabilities when faced with a weak macro environment and increasing competition from Intel," Wang added.

Tuesday was the day AMD posted their loss of $335, which is certainly better than the $1.19 billion from last year, but remains a troubling set of numbers.

AMD Chief Executive Dirk Meyer expressed disappointment.

"While we increased cash, exceeded our revenue plan and reduced operating expenses in the second quarter, gross margin was disappointing," he said in a prepared statement.

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