Advanced Micro Devices Stock Rises after Last Month’s Fall
Stock rose 7.3% yesterday
The stock of semiconductor (SMH) company Advanced Micro Devices (AMD) rose 7.3% on Monday, November 6, 2017, to close at $11.93. The stock rose almost 10% on November 3, 2017. AMD is currently trading 92% above its 52-week low of $6.22 and 24% below its 52-week high of $15.65.
In October 2017, AMD stock fell 14% after the company announced its 3Q17 earnings. Investors seemed concerned about the company’s long-term prospects. Last month, investment bank Morgan Stanley (MS) cut its 12-month stock target for AMD from $11 to $8 and lowered its rating to “underweight” from “equal weight.”
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Morgan Stanley doesn’t seem convinced that AMD can grow its revenue from business segments such as cryptocurrency mining and video consoles or offset the revenue decline from its core business segments.
Partnership with Intel
A few days ago, Advanced Micro Devices and Intel (INTC) announced a partnership in the computer chip space. The two companies are looking to create a computer chip that will combine Intel’s processor with AMD’s graphics unit. The new chip is expected to create demand among gaming and content creation customers.
According to Investor Place, the new chips won’t compete with AMD’s existing Ryzen mobile chips.