NEW YORK ( TheStreet) - AMD ( AMD) cut its second-quarter guidance after market close on Monday, citing softer-than-expected sales in China and Europe along with weak consumer demand for PCs. The no. 2 chip maker now expects its revenue to decrease 11% sequentially. Previously, AMD forecast a 3% increase, plus or minus 3%, sequentially. "The lower preliminary revenue results are primarily due to business conditions that materialized late in the second quarter, specifically softer-than-expected channel sales in China and Europe as well as a weaker consumer buying environment impacting the company's Original Equipment Manufacturer (OEM) business," explained AMD, in a statement. Investors balked at the slashed guidance, pushing AMD's shares down 4.8% to $5.35 in extended trading. AMD's shares closed down 2.2% during Monday's trading. AMD, which is slated to report its second-quarter results after market close on July 19, expects its second-quarter gross margin to be approximately in line with its prior guidance. Speaking during AMD's first-quarter conference call, CFO Thomas Seifert said that he expects the company's gross margin to be flat to slightly up in the second quarter. During the first quarter, AMD reported revenue of $1.59 billion and a non-GAAP gross margin of 46%. The Sunnyvale, Calif.-based firm comfortably beat analysts' estimates in its first-quarter results, but was recently downgraded by Sterne Agee, which pointed to the slowing PC market. Rival Intel ( INTC) was also busy on Monday, announcing plans to take a 15%, stake in ASML Holding N.V. ( ASML) as part of a $4.1 billion deal which also includes research funding for the Dutch semiconductor specialist. -- Written by James Rogers in New York.Follow @jamesjrogers >To submit a news tip, send an email to: email@example.com. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.