AMD shares climb 5% as Wall Street debates chipmaker's direction
David Becker
Advanced Micro Devices (NASDAQ:AMD) shares climbed almost 5% Monday as investors continued to suss out sentiment around the chipmaker following its recent first-quarter results and moves in the artificial intelligence market.
Activity in AMD (AMD) was high, with 54M shares of its stock trading hands by midday. AMD (AMD) averages more than 60M shares exchanges on a daily basis.
Last week, AMD (AMD) gave a respectable first-quarter earnings report, but saw its shares plunge by 10% on reaction to the company's weaker-than-expected second-quarter outlook, and Chief Executive Lisa Su saying that AMD (AMD) still expects to a "mixed" market for sales in the months ahead.
One area that Su said AMD (AMD) was continuing to invest in is artificial intelligence, and that AMD (AMD) "is in a strong position" for the opportunities presented by AI. Towards the end of the week, AMD (AMD) got a boost from reports that Microsoft (MSFT) was investing in AMD's (AMD) efforts to develop new chips for AI services.
However, by the end of the week, such an arrangement appeared to be off the table, as a Microsoft (MSFT) spokesperson said AMD (AMD) wasn't involved in Microsoft's (MSFT) development of its AI chipsets known as Athena.
AMD's (AMD) gains on Monday stood out in what was a day of largely flat performances from semiconductor stocks.
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