AMD has warned analysts and investors that Q4 2008 will likely be 25 weaker than Q3 2008 and that we can easily prepare for one more quarter of losses.

The management said that AMD is a victim of technology slowdown that hit all IT companies. At the current rate, AMD expects 25 percent less revenue in Q4 2008 than it originally planned, and the weaker than expected demand across all markets kind of messed up that plan. Intel shares the same problem and graphics business with ATI and Nvidia will definitely be a victim of this slowdown.

AMD will report its official Q4 results on January 22nd, and on a separate announcement Intel has already cut its revenue forecast by $1.4 billion. Intel, on the other hand, will suffer from the same tech spending slow down, but at the same time it might be the victim of its great success with cheap Atom platform that will destroy its average selling price.

Overall, the chip industry is not feeling that great and they have to prepare for some rough times. 

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AMD Warns of a Revenue Shortfall