Market News Call

Advanced Micro Devices, Inc. (NYSE:AMD) Rebounds Strongly On Heavy Volume

Shares of Advanced Micro Devices, Inc.(NYSE:AMD) are having crazy day on Wednesday as the stock has been outperforming the broader market by high margin.

The stock has gained as much as 41 cents or around 14% at $3.24 on hefty volume of 62 million shares with an hour of trading still left for the day. This is compared to its 30-day average volume of 16.74 million shares.

So What’s driving AMD suddenly? Well, there is no news which could justify such a hefty rise. But, the stock which was the key laggard in 2012, has rebounded strongly from its multi-year low of $1.81 and now up 80% from the lows.

This morning, an analyst at Wells Fargo wrote that the company today debuted two new microprocessors in its “FX” series, the “FX-6350″ and the “FX-4350,” two 4.2-gigahertz processors selling for $132 and $122, respectively.

The firm has an Outperform rating on the stock with valuation range of $5 to $7.

The stock had been showing stable up move since the beginning of April and stabilized above its 50-Day Moving Average and 200-Day Moving Average.

So the part of today’s rally could be because of short squeeze as many analysts were pessimistic on the stock.

Shares of AMD have risen over 41% year to date. However, it is still down 58% in the past one year.

Tags: , , ,

Leave your comment here