We were surprised to see that AMD went up an astonishing 9.04 percent, or $0.59 in a single day. A day before, on Monday, AMD risen 6 percent.
After a short investigation, we learned that AMD went up as it revealed the antitrust documents in its legal case versus Intel. Analysts believe that AMD will get a considerable amount of cash if Intel agrees to settle the case. The only trouble is that this case can go on for years, this is definitely not a short-term thing and for once analysts agree with our opinion.
The second and probably more important information is that the company might be close to retooling its manufacturing practices. This is part of AMD's asset light program, but it’s still very cloudy what will AMD do in order to get to its asset light position. Selling fabs or pieces of fabs might be one of the options.
It was a good day for both Intel and Nvidia as Nvidia went up 2.6 percent or $0.57, to $22.53 while Intel went up 1.42 percent, or $0.33, to $23.58 a share.
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AMD jumps on Intel antitrust suit, potential restructuring