According to reports, Chipmaker Advanced Micro Devices Inc has decreased its revenue estimate for the second quarter, less than average estimate of analysts. It said that the demand for personal computers was less compared to what was expected.

As per reports, AMD's shares dropped as much as 15% to $2.10 in extended trading following the company also slashed its adjusted gross margin estimate for the quarter that ended on June 27.

According to Wedbush Securities analyst Betsy Van Hees, "They are going through a big transitions. It's not a one quarter turnaround story, it's going to take multiple quarters for the vision to come to fruition".

The company has been concentrating on low-power servers and gaming consoles, however progress has held up expectations by Wall Street as a result of tough competition from Intel and new rivals that make low-cost and power-efficient chips.

It was reported by Reuters that in June, AMD started reviewing whether to divide itself in two or spin off a business, in order to overturn its fortunes and take on Intel Corp.

On Monday, the company said that it expects that revenue have decreased nearly 8% from the first quarter, compared to its earlier estimate of down 3%. This indicates revenue of nearly $948 million. According to Thomson Reuters I/B/E/S, analysts were expecting it to be $999.6 million.

The company also slashed its estimate for second-quarter adjusted gross margin to approximately 28%.