AMD share price drops $2 on margin fears

[Alpine]

CHIP FIRM AMD saw its share price drop $2 in a day after it reported a profit leap of 73 per cent.

Financial analysts are fretting that AMD's gross margins aren't gross enough, while they also reckon people were picking up some profits.

AMD's share price (tick: AMD) fell to stand at $22.

Intel (tick: INTC) also suffered during trading on NASDAQ, with its share price currently standing at $22.90, down 52 cents. Prudential downgraded Intel.

One analyst at AMD's conference call last night questioned the bonuses of $66 million paid during the quarter, compared to $17 million in the equivalent quarter a year ago. Accountant Bob Rivet explained to the analyst that only people who contributed to the profits got bonuses.

Other losers during today's trading include Rambus (tick: RMBS), which saw its share price fall to $10.80. It delivers its quarterly results later this week.

Apple (tick: AAPL) fell by $1.76 to $49.83 at press time, because it didn't sell as many re-assuringly gizmos as the Wall Street analysts expected.

Nvidia (tick: NVDA) did well, rising 83 cents at press time to stand at $32.65. ATI (tick: ATYT) was also up 27 cents on the day, to stand at $13.70 at press time. Funny old business, Wall Street.

The INQuirer