The AMD stock forecast plummeted early on Friday as the firm warned that sales for the third quarter would be more than $1 billion lower than expected. Wall Street has started to make its voice heard.

The semiconductor manufacturer reported that it expects to fall short of its revenue projection for the third quarter, citing a decrease in demand for personal computers. The business reported that it anticipates sales of $5.6 billion for the third quarter, a decrease from its earlier prediction of $6.7 billion plus or minus $200 million.

According to a statement released by the chipmaker’s chief executive, Lisa Su, the personal computer market “seriously declined” during the quarter. “While our product portfolio continues to be extremely robust, macroeconomic factors generated lower-than-expected PC demand and a major inventory adjustment across the PC supply chain,” she continued. “While our product portfolio continues to be very strong.”

AMD Stock Forecast Today

John Vinh, an analyst at KeyBanc Capital Markets, decreased his price objective on the shares from $130 to $100 but kept his Overweight rating on the shares. He did this with an eye on the long term. “While these results are disappointing, we are maintaining our Overweight position in Advanced Micro Devices Inc (NASDAQ:AMD) since we continue to predict outsized growth over the long term,” he added. “This growth will be powered by secular growth as well as share gains in the data center.”

The price objective that Piper Sandler analysts have set has been reduced to $90 from $140. “We feel that, much like other consumer-focused semi-businesses, there is a considerable quantity of inventory in the channel and that AMD must be under-shipping significantly,” they added. “We believe this is because of AMD’s massive under-shipping.”

But the analysts, led by Harsh Kumar, “remain to think AMD stock forecast provides solid value at current prices,” and they have not changed their recommendation for the company from Overweight to Underweight.

Benchmark analysts stated that the poor pre-announcement of profits was “not surprising,” While they maintained their Buy rating, they decreased their price target from $135 to $95. This was done to reflect the reduced expectations.

“We feel the pre-announcement is already priced into the stock to a substantial extent,” they wrote in a note on Friday. “This belief is based on the firm’s share price has already suffered to an outsized degree this year.”

One of the world’s foremost manufacturers of semiconductors, Samsung Electronics 005930 –0.18%, did not help overnight by reporting a 32% reduction in operating profit for the third quarter.

The semiconductor giant Taiwan Semiconductor Manufacturing 2330 -2.88% (TSM) provided some more encouraging news, reporting that revenue in September grew 36% compared to revenue in September 2021, despite sales decreasing 4.5% compared to revenue in August 2022. The stock dropped by over 3 percent, along with the rest of the industry companies.

On the S&P 500, AMD stock forecast fell the most sharply, while those of Nvidia NVDA –7.84% (NVDA) and Intel INTC –5.39% (INTC) also fell close to 3%. AMD stock forecast as the worst performer.

During trading in Europe, shares of the Swiss-listed Austrian chipmaker AMS sank by almost 6%, shares of the Dutch semiconductor company ASML fell by 2.4%, and shares of the German chipmaker Infineon declined by 1.2%. The shares of Samsung fell less than 0.2 percent, rebounding from earlier losses.