Advanced Micro Devices, the chipmaker which is the closest competitor to sector giant Intel, has posted a loss of $9.2m during the three months of the year.

That compares to a profit of $124.8m in the same three months a year ago.

During the same period, revenues fell to $902m from $1.2bn.

Despite the dramatic falls when compared to the previous year, the results were still substantially ahead of analyst expectations.

Intel also cheered investors and analysts this week when it reported that its year-long sales slide had been stopped in the first quarter of 2002.

The semiconductor industry has been stuck in its worst ever slump after the economic slowdown put a damper on the technology spend of many companies and individuals.