AMD (NYSE:AMD) had another loss in the third quarter. There was some solace in the fact that it was slightly less than the red ink in the second quarter and that this means that chip price wars may be ending.

Don't count on it. AMD's loss in the third quarter was $396 million, or 71 cents a share. Those figures included costs of acquisition of ATI Technologies of $120 million. Revenue was $1.63 billion, up 23% from the $1.33 billion reported in the year-earlier quarter.

According to The Wall Street Journal "IDC, a market-research firm, estimates AMD accounted in the second quarter for 23.1% of unit sales of x86 microprocessors, the most popular variety of calculating engines for personal computers and server systems -- up from 18.6% in the first period." AMD thinks that those market share numbers got even better in Q3.

And, therein lies the problem. Intel (NASDAQ:INTC) is going to want that market share back. Over the last year, it has indicated that it will use its strong balance sheet to allow it to cut costs on chips to improve its piece of the pie. AMD would have to match those cuts to keep its unit sales high. Gross margins will be hurt.

The news of improvement in AMD's loss may push the stock up, but, at $14.55, its is still down from its 52-week high of $23. With a renewed price war still a real possibility, the share price is not likely to go anywhere.

Douglas A. McIntyre is an editor at 247wallst.com.