AMD expects shipments, gross margin to climb

Advanced Micro Devices Inc., the second-largest maker of personal computer processors, forecast that shipments would rise about 20% in 2007, twice the industry’s rate.

Gross margin, or sales minus the cost of goods sold, will climb to about 50% in 2007, Chief Financial Officer Robert Rivet said. That compares with an average of 47% over the last four quarters, he said.

Chief Executive Hector Ruiz will seek to extend the company’s gains against Intel Corp. with the purchase of graphics chip maker ATI Technologies Inc., which will help Sunnyvale, Calif.-based AMD add graphics to more processors.