This Thursday the stock price for AMD fell by over 14% after analyst James Covello of financial giant Goldman Sachs, downgraded the status of the stock from “hold” to “sell”. The drop in price came just after a very successful month of gains which saw the stock rise to its highest year to date price of $4.40.
During the last month AMD had seen its stock price slowly increase with over an 80% increase in price per share over the 31 day period. This comes off the back of recent buy out rumours from its only real rival in the x86 industry, Intel, who have reportedly been interested in acquiring the company recently. Other possible reasons for the rise in the cost of the shares is the host of recent good news that has been coming AMDs way of late including recent reports that they might be releasing their 20nm Volcanic Islands as early as the end of this year which will make them the first company to bring out a 20nm GPU, way ahead of their rivals Nvidia who won’t be releasing their 20nm Maxwell architecture until sometime during 2014. AMD have also won contracts with Sony and possibly Microsoft in the console market which will no doubt boost their reputation in the gaming industry and the technology industry on the whole.
AMD aren’t the only semiconductor company who have been seeing a rise in the price of their shares in recent weeks however. All three of their main rivals, Intel, Nvidia and ARM have all seen steading gains in the stock market of recent weeks. Intel and Nvidia are also releasing new products within the next month so expect to see stock prices rise one again when they are finally released.
Investors in the AMD stock are now confident that the stock will see a pullback soon and are continuing to invest in the stock. This is very probable as the stock is once again on the rise and is trading at over $4.00 a stock once more. Whether or not the stock will continue to rise in a similar fashion to what we have been seeing in recent weeks is anybody’s guess as the stock market can be a very unpredictable place and the stock could once again drop without any sort of warning.