The stock fell as much as 21 percent, the biggest intraday drop since January 2005, reversing the run up it enjoyed this year.
The company, which has spent months touting the ability of its new Zen design, reported sales that were in-line with analysts’ estimates and profitability that fell short of some projections.
The report Monday didn’t provide enough proof the product will meet expectations that fueled the quadrupling of Advanced Micro Devices’ shares last year.
Revenue in the current quarter will increase 17 percent, plus or minus 3 percent, from $984 million reported in the first quarter, the Sunnyvale, California-based company said in a statement.
Gross margin, or the percentage of sales remaining after deducting costs of production, will be 33 percent, Advanced Micro Devices said.