Advanced Micro Devices Inc. said on Monday that quarterly revenue would fall short of Wall Street expectations by about 20 percent, but the microprocessor maker's shares rose after it promised to slash this year's capital spending by one-fifth.
"AMD is signaling that it is focusing more on nearer-term profitability as opposed to targeting market share," said JoAnne Feeney, managing director with FTN Midwest Securities.
"People were concerned about that strategy," Feeney said.
AMD, the No. 2 supplier of computer processors after Intel Corp., said it expects to report first-quarter revenue of about $1.23 billion, well below the $1.54 billion that was the average analyst forecast on Reuters Estimates.