Breaking Even: There's a number of factors that should go in AMD's favor the rest of the year. Video card revenues ought to be up considerably (next quarter's results should give a good idea as to by how much and thus how much the ex-ATI can actually help AMD's bottom line), and increased Phenom sales (plus some Shanghai sales in the fourth quarter) should help the CPU end of the business. On the other hand, the PC market is already softening, which may put extra pressure on both CPU and GPU prices.

Some might think that bad times are good news for AMD, since people will be looking for cheaper processors. Under different circumstances, that might be the case, but right now, AMD doesn't need popularity, it needs profitability. A 5% change in the average selling price of CPUs makes almost a $50 difference in profit/loss for AMD. Also keep in mind that its the OEM prices AMD is getting that matters, not the retail price.