AMD sales better than expected, CPU demand rises

Advanced Micro Devices Inc. said Thursday it lost money in the third quarter, but its stronger-than-expected sales are adding to 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. The chipmaker was hurt by weak consumer and business spending on computers in the first half of the year, but it says shipments rose in the quarter.
Earlier this week, AMD's larger competitor, Intel Corp., predicted 2009 will end with growth in PC sales, and researchers said PC sales picked up in the third quarter. Businesses aren't expected to replace old computers until sometime next year.
Sunnyvale, Calif.-based AMD says revenue fell 22 percent, but analysts were expecting a steeper decline.
Shares fell 10 cents, or 1.6 percent, to $6.09 in extended trading after the release of results. Earlier, it closed down 6 cents, or 1 percent, at $6.19 in regular trading.