Gateway in Deal With AMD

Advanced Micro Devices Inc. said Gateway Inc. is buying Advanced Micro’s top-of-the-line Athlon microprocessors for its personal computers after a shortage of Intel Corp. chips cut into Gateway’s sales. Gateway PCs using Athlon chips are available now. The Athlon is a new chip that Sunnyvale, Calif.-based AdvancedMicro is counting on to stem losses and stay in business after a decades-long battle with Intel, the world’s biggest maker of PC microprocessors. The announcement comes less than a week after Gateway, the No. 2 direct seller of PCs, warned that it won’t meet fourth-quarter earnings forecasts because it couldn’t get enough chips from Intel. Gateway is one of the biggest customers for Athlon, along with Compaq Computer Corp. and IBM Corp. On the NYSE, Advanced Micro shares rose $2.50 to $35. San Diego-based Gateway climbed $2.50 to $64.13.