AMD has high expectations for its upcoming Zen processors, which will first come to high-end desktops like gaming PCs at the end of this year. The company is in conversations with PC makers to use Zen-based chips, code-named Summit Ridge, said Lisa Su, CEO of AMD, during an earnings call on Tuesday.

Early next year, Zen chips will be in servers.

AMD says that the Zen architecture will provide the best virtual reality and gaming experience coupled with the company's GPUs based on the Polaris architecture, which will ship later in 2016.

AMD's Zen chips will likely square off against Intel's current Skylake or next-generation Kaby Lake chips.

Su said that the Summit Ridge chips will mark AMD's "re-entry" into the high-performance desktop market.

A Zen-based CPU offers a performance uplift of 40 percent per cycle than Excavator CPU cores, which are in current chips code-named Carrizo, Su said.

The performance improvements are due to a a high-bandwidth caching system, which improves internal throughput so memory, cache and CPUs can communicate faster. The chips will be made using 14-nanometer process.

2015 Fourth Quarter and Annual Results

AMD forecast first-quarter revenue below estimates, due to lower demand for its graphic chips used in consoles and an economic slowdown in China.

The company said a cautious macro environment in China would affect revenue in the first quarter.

AMD forecast revenue for its first quarter to decrease 14 percent, plus or minus 3 percent, from the preceding quarter.

The company's net loss narrowed to $102 million, or 13 cents per share, in the fourth quarter ended Dec. 26, from $364 million, or 47 cents per share, a year earlier.

Revenue fell 22.7 percent to $958 million.