AMD share prices up as Intel fined

THE LIGHT IS starting to shine at the end of AMD’s long, dark tunnel as stock prices rose by seven per cent yesterday.

The beleaguered chipmaker appears to be turning a corner, having unveiled its new Puma chips yesterday and winning an important legal battle in South Korea against arch rival Intel.

Along with the aforementioned two factors, increasing rumours that the company is preparing to go “asset light” (significantly lowering the firm’s capital investments) means investor confidence is soaring, taking AMD shares up by 50 cents to $7.69, a seven per cent increase.

AMD’s Puma chips, which combine the firm’s microprocessor know-how with ATI’s graphics expertise, have proved that, when it comes to the crunch, AMD can still deliver a key silicon product at a competitive price and suited to today’s notebook market.

Likewise, the decision by the Korean Fair Trade Commission to fine Intel about $26 million (after a three-year investigation into the company’s antitrust practices), goes a fair way to vindicating AMD in its claims that its market share has been unfairly crushed by Intel’s illegal and shady business practices.

However, AMD is not out of the woods just yet. Despite the fact that share prices have soared over 12 per cent in two days, the firm is still trading at 45 per cent less than it was at the same time last year. Still, at least now the company appears to be getting itself back on track.

L’Inq
Reuters

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