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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