AMD’s stock craters more than 20% after weak graphics sales

Advanced Micro Devices Inc. shares plummeted in the extended session Wednesday after the chip maker’s outlook and revenue fell short of Wall Street estimates owing to weaker-than-expected graphics sales.

AMD AMD, -9.17% tumbled 24% after hours, following a 9.2% drop to close the regular session at $22.79.

Revenue rose to $1.65 billion from $1.58 billion in the year-ago period. Wall Street expected revenue of $1.7 billion from AMD, which had predicted revenue of $1.65 billion to $1.75 billion for the third quarter. Estimize, a software platform that uses crowdsourcing from hedge-fund executives, brokerages, buy-side analysts and others, expected revenue of $1.75 billion.

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