AMD's Sales Plunge As Demand Shrinks

Advanced Micro Devices Inc. projected fourth-quarter sales will plunge 25% from the third period, in a sign that the global economic downturn is rapidly drying up personal-computer demand.

The chip maker's new forecast for what is typically the tech industry's most lucrative quarter -- after predicting flat revenue in mid-October -- provides strong evidence that the first quarter of 2009 also will be extremely weak.

Most manufacturers order new components well in advance of building new systems, so slower orders in the current period for AMD microprocessors point to pessimism among PC makers about the first months of next year.