Chip shares take a dive

NEWS Chip shares were down this morning as spiralling losses from AMD and Texas Instruments reversed yesterday's gains. AMD shares fell 8.4 per cent this morning after the company posted a 36 per cent drop in revenues to $766m, compared with $1.2bn in the quarter a year ago. Total net loss rose to $187m, or 54 cents a share, compared with a profit of $409m, or $1.18 a share a year ago. Texas Instruments said that third quarter revenues fell 41 per cent on last year to $1.85bn compared with $3.13bn. Net loss rose to $245m compared with a loss of $90m in the year ago quarter. It warned that fourth quarter revenue will fall ten per cent.