AMD posts first profit in 13 quarters

It has been a long, and at times, ominous road for number-two chip maker AMD, however, we are happy to report that there is reason for the underdog to celebrate. After 13 consecutive quarters of operating in the red, AMD has reported a net income of $1.18 billion dollars for the fourth quarter of 2009. The announcement is largely due to a 28% growth in sales over the holiday season — fueled by the demand for new PC’s and netbooks — and a $1.25 billion lawsuit settlement from rival chip maker Intel. Sales from AMD’s graphics division lead the charge climbing 58% from the previous year, while processor sales also jumped 39% year-over-year. Even with all this good news AMD’s stock is trading lower, as analysts are uncertain that AMD can hit its revenue number for 2010 and/or gain market share from the juggernaut that is Intel.

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Tags: AMD, intel, lawsuit, profits, Q4 2009