AMD also has a new notebook chip in the works that should help it challenge Intel's long-standing dominance in that fast- growing segment.
Even then, it may take several months before the new chips translate into fresh share gains. That is because AMD must increase output of those chips, while customers need time to evaluate them against Intel's offerings.
"If the Vista deployments begin to build some momentum and PC sales overall improve dramatically, then everyone will benefit and it could lift AMD," Acree said.
"Unfortunately, a lot of things don't change for AMD until they get new products, just like how things didn't change for Intel until they had new products."
In light of AMD's warning, Wall Street now expects it to show a profit, before special items, of $51 million, or 8 cents per share. Including the company's acquisition of graphics chip maker ATI, which closed in the quarter, AMD is expected to show a loss of nearly $500 million, or 91 cents per share.
AMD reports quarterly earnings on January 23.
Source: http://today.reuters.com/news/articlenews.aspx?type=technologyNews&storyID=2007-01-12T220543Z_01_N11450199_RTRUKOC_0_US-INTEL-AMD.xml&pageNumber=2&imageid=&cap=&sz=13&WTModLoc=NewsArt-C1-ArticlePage2
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