AMD has posted its sixth consecutive quarterly loss, despite a 22 per cent year-on-year increase in sales.
The company lost $358m between January and March 2008, as it struggled to catch up with Intel's latest technical advances in 45nm manufacturing.
AMD posted revenues of $1.51bn for its first quarter, compared to $1.23bn a year ago and $1.77bn for the fourth quarter of 2007.
The poor results came as no shock to industry analysts, who were warned last week that AMD would miss earnings expectations by about $100m.
AMD chief executive Hector Ruiz said that the chip firm is addressing its loss making situation with additional restructuring.