AMD Sales Better Than Expected, CPU Demand Rises

JESSICA MINTZ

SEATTLE (AP) — Advanced Micro Devices Inc. lost money in the third quarter but said Thursday that sales were stronger than expected, adding to mounting evidence that consumer spending is fueling a turnaround in the personal computer market.

AMD sells about 20 percent of the world's computer microprocessors, which are the brains inside PCs. Although AMD was hurt by weak consumer and business spending on computers in the first half of the year, the chipmaker said shipments rose from the previous quarter thanks to strong demand for processors used in laptop computers.

That's in line with what PC industry researchers reported earlier this week.

The recession has squelched consumer demand for high-end PCs, but they continued to snap up inexpensive laptops and tiny "netbooks" in the third quarter. That pushed PC shipments into positive territory for the first time this year, according to IDC and Gartner Inc.

AMD and analysts also reported demand in China bolstered results in the quarter.

Businesses, however, aren't expected to replace old computers until sometime next year. In a conference call, AMD CEO Dirk Meyer said executives that make technology-buying decisions are more positive about spending in 2010, and some may even start buying again this year.