Advanced Micro Devices Continues To Rip On Potential Intel Deal

Advanced Micro Devices, Inc. AMD shares are soaring more than 10.7 percent on Monday after some positive headlines about the company and a potential deal with Intel Corporation INTC have surfaced.

According to HardOC editor Kyle Bennet, Intel has licensed AMD graphics processing units (GPUs).

Commentary

“Intel is licensing AMD GPU technology No money has changed hands yet, so there is no financial impact until late in the year, hence nothing in the current earnings report [...] I would expect more collaboration between AMD and Intel in the future on the graphics side. And you can take all that to the bank,” Bennet said of the deal.

While the companies haven’t officially reported the deal, it seems as if investors are, in fact, taking the info to the bank.

At the same time, Barron’s Tiernan Ray published a new article over the weekend explaining why he believes AMD’s commitment to cloud computing is grounds for the company’s share price to double over the next year. The stock is sure off to a solid start with Monday’s 10 percent gain.

Surprisingly, NVIDIA Corporation NVDA, which AMD likely beat out for the Intel GPU deal, is also up more than 2.2 percent in Monday’s session.

AMD and NVIDIA have been two of the hottest stocks in the market in recent months, up 94.0 percent and 64.3 percent since Election Day.

At Last Check

• Shares of Advanced Micro Devices were up 9.97 percent at $13.46.
Shares of Intel were down 0.85 percent at $36.21.
• Shares of NVIDIA were up 2.03 percent at $116.71.