Advanced Micro Devices ( AMD) was rising after Hewlett-Packard ( HPQ) said it would sell an inexpensive new business PC using the Athlon XP processor and a graphics card from Nvidia ( NVDA).

The shares were recently up 3% to $10.30.

AMD's high-performance Athlon XP processor, its latest salvo against dominant rival Intel ( INTC), will power the new HP-Compaq D315 Business PC geared toward small and medium-sized companies. With 266 megahertz of front-side bus and double-data rate SDRAM, it lists for $549 plus a $100 rebate.

AMD reported a $185 million loss in the second quarter and a 39% decline in sales from the year-earlier period. In 2001, its total revenue was $3.9 billion. The business market, where users have traditionally been zealously loyal to Intel because of perceptions of reliability, has long been a holy grail of AMD in efforts to get PC manufacturers to deploy its microprocessors.

First Call/Thomson Financial analyst consensus predicts AMD will lose 48 cents a share in its third quarter and $1.42 for the year.