For the fourth quarter, AMD said it expects revenue to increase sequentially by 3 percent, plus or minus 2 percent.

AMD's customers are looking for the company to deliver products on time, AMD CEO Rory Read said during a conference call.

"No doubt, we must improve our execution," Read said.

The company is making improvements step by step and one manufacturing machine at a time, Read said. The company is working with GlobalFoundries to fix problems and bringing in manufacturing partners such as IBM to help resolve issues.

The company will deliver significantly more chips made using the 32-nanometer process in the fourth quarter, Read said. However, he did not provide a clear picture on when the manufacturing issues would be completely resolved.