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The revenue decline wasn't quite as severe as Wall Street had feared. One bright spot was higher prices for graphics chips.
AMD lost $330 million, or 49 cents per share, in the second quarter. In the same period last year, it lost $1.2 billion, or $1.97 per share.
Analysts had predicted a loss of 47 cents per share. Sales fell to $1.18 billion. Analysts were expecting $1.13 billion.
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