Monday, December 3, 2012

Advanced Micro Devices, Inc. (NYSE:AMD) Shares Gain Further Momentum, Up 8%

Advanced Micro Devices, Inc.(NYSE:AMD)’s shares have jumped almost 30% in the past one week and is up for the fourth consecutive session as the company plans to sell and lease back its campus in Austin, Texas, to raise cash and fund its chip making business as it diversifies beyond the struggling PC industry into new markets.
AMD said it will sell and lease back its 58-acre Texas campus for $150 million to $200 million. It hopes to close the deal in the second quarter of 2013. Problems arose mainly due to the introduction of mobile gadgets like the smartphones and tablets, because of which the PC markets have become weak and hence there has been a strong decline in the sales.
Evercore Partners analyst Patrick Wang said in a note that the move is "but a temporary fix," he added "The quick cash fix would help alleviate management's current cash crunch over the next two to three quarters."
AMD is currently looking to step into other markets. In late October, they announced that they were in the process of making 64-bit ARM processors for multiple markets, starting with its Piledriver Opteron 6300 Series, which will replace the Bulldozer-equipped Opteron 6200 Series.
Nevertheless, the stock is still down almost 50% so far this year and recently made multi-year low of $1.81.

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