Intel stocks lost as much as 12% on the news, despite gaining market share from AMD, especially in the market for computer servers, which carry higher profit margins than desktop PCs.

Shares of AMD rose 73 cents or 11.5% to $7.07 in Friday trading, as investors cheered the news the company was now on the mend. Over the past 52 weeks, the stock has traded in the range $5.31 to $17.98. Analysts are now targeting a one-year price of $10.30.

“We are very pleased with our financials,” Hector de J. Ruiz, A.M.D.’s chief executive, said in a conference call with analysts. “We came darn close operationally to breaking even during the quarter.”