Advanced Micro Devices Inc. said Wednesday its gross profit margin should improve next year as chip sales pick up.
The world's No. 2 microprocessor company expects gross margin of 40 percent to 45 percent in 2010. That compares with 38 percent in the third quarter and 27 percent in the second quarter of this year.
The numbers exclude AMD's chip-manufacturing division, which AMD spun off this year but still includes in its financial reports.
They are short of bigger rival Intel Corp., whose gross margin was 58 percent in the third quarter.
AMD's stock gained 18 cents, or 3.5 percent, to $5.32 in afternoon trading.