AMD Profit Spikes In 1st Quarter Despite Price Drop
SUNNYVALE (CBS/AP) -- Advanced Micro Devices Inc. said its net income nearly doubled in the first quarter as the computer industry benefits from strong corporate demand.
As the No. 2 maker of PC processors, AMD's results help illustrate broader trends in technology spending. When companies' interest in PCs perks up, their interest in other kinds of computers typically does as well.
While the company's results topped expectations, the reaction on Wall Street initially was subdued. Sunnyvale-based AMD has for decades existed in the shadow of its larger rival Intel Corp. and is often squeezed on prices and has trouble finding new ways to expand the business.
One potentially worrisome sign: AMD's prices for its microprocessors, the "brains" of PCs, declined from last quarter, while Intel's prices increased. Intel reported its results earlier this week.
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