More doubt was cast on the tech-recovery thesis Tuesday when microprocessor maker

Advanced Micro Devices

(AMD) - Get Advanced Micro Devices, Inc. Report

said second-quarter sales would fall short of its previous guidance.

The Sunnyvale, Calif., CPU maker expects to show second-quarter sales of $615 million, down from its previous projection of $715 million. Analysts surveyed by First Call were expecting sales of $723 million and a loss of 28 cents a share.

TheStreet Recommends

"The anticipated global sales improvement in the month of June did not materialize as we had anticipated," the company said. "In particular, the decline in personal computer and handset sell-through in China and other Asian markets, largely related to the SARS epidemic, significantly affected AMD's sales in the second quarter."

AMD's shares were recently down 31 cents, or 4.7%, at $6.28. Its much larger rival,

Intel

(INTC) - Get Intel Corporation (INTC) Report

, was up 2 cents to $20.39.