PRESS RELEASE DATED DECEMBER 11, 2000

NEWS RELEASE

CONTACT:
John Greenagel
Strategic Communications
(408) 749-3310

Toni Beckham
Investor Relations
(408) 749-3127



Exhibit 99.1




AMD EXPECTS FOURTH-QUARTER SALES AND EARNINGS WILL BE
LOWER THAN ANTICIPATED

Company now expects flat to nominally higher sales

SUNNYVALE, CA - December 11, 2000 - AMD said today that it expects to
report fourth-quarter sales flat to nominally higher than for the
immediate-prior quarter, ended October 1, 2000, when it reported record sales of
$1,206,549,000. The company said it now expects that fourth-quarter net income
will be in the range of $0.50 to $0.60 per share, depending on the relative
strength of PC processor sales in the closing weeks of the quarter. AMD cited
weak demand for consumer PCs in the United States retail market and projected
that, as a result, its unit shipments of AMD PC processors will be only
nominally higher than the record 6.8 million units shipped in the
immediate-prior quarter. AMD had previously stated that it expected total
fourth-quarter sales to grow sequentially in the high-single-digit-range, with
unit shipments of PC processors between 8 and 9 million units.

"While the slowdown in demand for PCs has been attributed variously to
excess channel inventory, a slowing economy, or buyer apathy, we believe it is
temporary," said W.J. Sanders III, chairman and chief executive officer. "The PC
in wired and wireless forms will continue to be the hub of the digital
universe."

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The company said demand for one-gigahertz and faster AMD Athlon(TM)
processors remains strong and it continues to expect to sell out its production
of AMD Athlon processors. Demand for AMD Duron(TM) processors is expected to
improve next quarter with the availability of chipsets featuring integrated
graphics for the value-conscious buyer.

The company said that demand for its flash memory products remains
strong and that it currently expects sales growth for flash memory products will
somewhat exceed previous guidance for the quarter. The company further said that
it has good visibility into future demand for flash memory products, which it
expects will remain strong in 2001.

Cautionary Statement

This release contains forward-looking statements, which are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that forward-looking statements in this release
involve risks and uncertainty that could cause actual results to differ
materially from current expectations. There can be no assurance that the company
will meet its current revenue and earnings projections for the fourth quarter of
2000. Risks include the possibility that demand for personal computers and, in
turn, demand for the company's PC processors will be lower than currently
expected; that the company will not be able to produce the AMD Athlon and AMD
Duron processors in the volume, speed mix or with the feature set necessary to
meet customer requirements and the company's current plans and goals; that Intel
Corporation pricing, marketing programs, new product introductions or other
activities targeting the company's processor business will prevent attainment of
the company's current processor sales plans; that third parties may not provide
timely or adequate infrastructure solutions to support the AMD Athlon and AMD
Duron processors; and that uncertain political and economic conditions will
cause lower than expected demand for the company's products. We urge investors
to review in detail the risks and uncertainties in the company's Securities and
Exchange Commission filings, including but not limited to the report on Form
10-K for the year ended December 26, 1999 and the company's most recently filed
Form 10-Q.

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About AMD

AMD is a global supplier of integrated circuits for the personal and
networked computer and communications markets with manufacturing facilities in
the United States, Europe, Japan, and Asia. AMD produces microprocessors, flash
memory devices, and support circuitry for communications and networking
applications. Founded in 1969 and based in Sunnyvale, California, AMD had
revenues of $2.9 billion in 1999. (NYSE: AMD).

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NOTE TO EDITOR: Readers may obtain additional information by calling
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AMD, the AMD logo, AMD Athlon, AMD Duron and combinations thereof are trademarks
of Advanced Micro Devices, Inc. in the United States and other jurisdictions.