NEW YORK (TheStreet) -- Personal computers sales, an important profit-producing business for chip company Advanced Micro Devices (AMD) - Get Report, are on the decline. This has been the case for a number of years. But the Sunnyvale, Calif.-based company, whose shares have plummeted over 23% on the year, can't escape the grasp PC of sales unlike, say, Intel (INTC) - Get Report, which is moving towards the Internet-of-Things.

Aside from AMD's struggles in its PC business, the company is also dealing with weak demand in its graphic cards segment. It's encouraging that it has chip placements in video game consoles like Microsoft's (MSFT) - Get Report Xbox and Sony's (SNE) - Get Report PlayStation but that has done little to offset the huge hit AMD takes from its PC business, making the stock even more risky despite its recent decline.

Ahead AMD's second-quarter earnings results, due out Thursday after the close, things have gotten worse. AMD stock, at $2.05, is down over 53% over the past 12 months. It has broken below a key resistance level of $2.00, falling to a new 52-week low last week of $1.93 a share.

You would have to go all the way back to November of 2013 to find the last time AMD shares traded below $2. This means, the next area of support for the stock is around $1.70 a share, which is 2 cents above its 2008 low of $1.68.

Don't touch this stock with a 10-foot pole, especially with almost 20% of its outstanding shares now in the hands of short-sellers who are betting on the company's failure. As evidenced by the average analyst estimate for the just-ended quarter, the shorts have placed a good bet.

For the quarter that ended June, AMD is expected to post a loss of 17 cents a share, reversing last year's profit of 2 cents a share. First-quarter revenue is projected to be $950 million, marking a year-over-year decline of 34%. For the full year, ending in December, the average analyst estimate calls for a loss of 38 cents a share on 25% year-over-year decline in revenue, reaching $4.10 billion.

In other words, not only is Advanced Micro Devices' business broken, so is the stock. In fairness, after three years of losing money, last October AMD installed new CEO Lisa Su to replace Rory Read, who stepped down. Su has attempted various measures to get AMD closer towards profitability and better diversify the business. Nothing has worked. Thursday's results will likely affirm what the stock has already implied -- investors should move on to investments with much better prospects.

This article is commentary by an independent contributor. At the time of publication, the author held no shares in any of the stocks mentioned.