The chip-manufacturer Advanced Micro Devices narrowed its net loss in the third quarter of this year as the company is getting closer to profitability.

AMD said that it witnessed better than expected demand for its products during the third quarter, signifying soaring consumer spending in the personal computer market.

The California-based chip-maker suffered a net loss of $128 million during the tree months ended September 26 as against a net loss of $134 million last year.

However, speaking on the issue, analyst JoAnne Feeney said, "There's still some skepticism out there about their ability to sustain the success."

AMD added that it expected its revenue for the fourth quarter to be modestly up from the third quarter.

On the other hand analysts were projecting revenue of $1.36 billion, which is less than the sales during the third quarter.

In the recent trading, shares in AMD lost 3.7 per cent to $5.96 on the NYSE. However, AMD's shares gained around 11 per cent from the beginning of previous week.