(Bloomberg) -- Advanced Micro Devices Inc., the second-largest maker of computer processors behind Intel Corp., gave a disappointing revenue forecast and missed third-quarter sales estimates on weaker performance of its graphics chips. The stock slumped in extended trading, wiping out more than a fifth of the company’s market value.

Fourth-quarter revenue will be about $1.45 billion, plus or minus $50 million, the Santa Clara, California-based company said Wednesday in a statement. That compares with analysts’ average estimate of $1.6 billion, according to data compiled by Bloomberg.

Under Chief Executive Officer Lisa Su, Advanced Micro Devices has put together a run of eight quarters of double-digit percentage sales growth as it rebounds from the lowest ebb in its almost 50-year history. The company has developed products that compete with those from Intel and Nvidia Corp. in graphics. Investors have been looking for evidence that those chips are winning in the market, but they didn’t find it in Wednesday’s results.

AMD is the second-largest maker of graphics processors used as add-in cards in gaming personal computers. The company is trying to make a comeback in server processors against Intel, an opponent that has about 99 percent of the market.

The computing and graphics business had sales of $938 million in the third quarter, up 12 percent from a year earlier, but a drop of 14 percent from the prior period. Improving demand from Ryzen computer processors helped cushion the decline in graphics chip revenue, the company said. Re-sellers of its graphics chips cut orders to reduce their stockpiles of unsold parts, AMD added.

Third-quarter net income was $102 million, or 9 cents a share, compared with $61 million, or 6 cents a share, a year earlier. Analysts had forecast profit of $106 million. Revenue rose 4.4 percent to $1.65 billion, compared with analysts’ average projection of $1.7 billion.

Shares declined as much as 25 percent in extended trading after the results were released. Earlier, the stock dropped 9.2 percent, amid a wider market rout, to close at $22.79 in New York. AMD’s shares have more than doubled this year, making it the best performer on the S&P 500.

After jumping into the sector in recent years, investors are showing no patience for semiconductor makers that disappoint. The Philadelphia Stock Exchange Semiconductor Index dropped 6.6 percent Wednesday after Texas Instruments Inc., which has the largest number of customers and the broadest product range in the chip industry, warned on Tuesday that demand is slowing across many of its markets.

One company bucking the industry trend is Xilinx Inc. The maker of programmable chips Wednesday gave a projection for current quarter sales that topped analysts’ estimates and raised its annual revenue forecast, sending shares up as much as 13 percent in extended trading.

Before AMD’s earnings report, investors have found renewed confidence in the company’s fortunes as its rival has struggled to introduce new production techniques. Previously, Intel has used its larger budget to shift to new technology in its factories more quickly, which allows it to produce chips that are cheaper or better performing.

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