MarketWatch First Take: All hopes for AMD now rest on the holiday season

Advanced Micro Devices Inc. is putting all its chips in one basket: The holiday season.

AMD reported on-target second-quarter results Tuesday, but also gave a disappointing forecast for the third quarter, as sales of its custom chips for videogame consoles continue to decline. AMD AMD, -10.10% shares fell more than 4% in after-hours trading and were down the same amount premarket Wednesday, after running up about 83% in 2019 on anticipation of new product launches, the second-biggest gain year-to-date in the S&P 500 index SPX, -1.09%

Those gains have been predicated on AMD promising a better second half, a common refrain among chip makers this year that has yet to be proved as several factors have combined to fuel a semiconductor downturn, including a memory-chip glut and a purchasing slowdown by cloud-computing companies.

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