AMD expects revenue for its fourth quarter to be 25% lower than its third-quarter revenue.
The chipmaker reported third-quarter revenue of US $1.6 billion (NZ$3 billion), not including process technology licensing revenue.
Last month, the company reported a narrower loss than expected for the third quarter, a loss of US$67 million, compared to a loss of US$396 million for the third quarter of 2007.
However, revenue is expected to be down for the fourth quarter, due to weaker-than-expected demand across "all geographies and businesses, particularly in the consumer market", AMD said in a news release.
For the fourth quarter of 2007, AMD reported revenue of US$1.8 billion and also a net loss of US$1.8 billion. As of the third quarter of this year, AMD has reported eight consecutive quarterly losses.
The company has long struggled to make money in a competitive environment. In October, AMD announced a plan to spin off its chip-manufacturing business into a separate company, in an effort to return to profitability.
The move could free AMD of the costs of building and maintaining its own manufacturing plants, analysts say. AMD would continue to design and sell its chips but have them manufactured by a third party.