The graphics business, which AMD acquired when it bought ATI Technologies two years ago, turned an operating profit for the first time, Rivet said.

AMD expects servers based on its new Shanghai processor, which uses a more advanced 45-nanometer manufacturing process, to be available in a few weeks, said President and CEO Dirk Meyer. Desktop PCs based on 45-nanometer processors will be available early in the first quarter next year, he said. The number refers to the dimension of circuits etched on the chips, and the more advanced process should mean faster, less power-hungry products.

AMD announced a plan last week to stem its losses by spinning off its chip-manufacturing business into a separate company. Analysts said the move could help AMD return to profitability by freeing it of the costly burden of building and maintaining its own manufacturing plants. AMD would continue to design and sell its chips but have them manufactured by a third party.

AMD's shares were up 5 percent ahead of the financial report Thursday, closing at $4.12. The stock moved 9 percent higher after the report was issued, climbing to $4.50 in after-hours trading.

Financial results are being closely watched this quarter as industry tries to weigh the impact of the emerging financial crisis in the U.S. on customers' IT spending. The news so far has been mixed.