(Bloomberg) -- Advanced Micro Devices Inc., the second-biggest maker of computer processors, gave a lukewarm forecast for the third quarter, indicating that market-share gains against Intel Corp. won’t offset a steep decline in demand for personal computers.

Revenue in the period will be about $6.7 billion, AMD said in a statement Tuesday, compared with an average analyst estimate of $6.81 billion.

AMD shares fell more than 5% in extended trading following the announcement. They earlier closed at $99.29 in New York, down 31% this year.

AMD Chief Executive Officer Lisa Su had said the company didn’t need an expanding PC market to continue to grow because it was making headway on Intel and benefiting from its new server chips. Tuesday’s outlook shows that the company isn’t completely insulated from the effects of a weakening PC industry, which is still the biggest market for its products.

Three months ago, Su said the company was expecting the PC market to be down in the high-single-digit percentage range in 2022. Last week, Intel downgraded its outlook for the market to a contraction of about 10%.

Research firm Gartner Inc. has predicted that PC shipments will shrink 13% in 2022 after two years of growth. Chip revenue from that market will fall 5.4%.

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Author: Ian King