Why Advanced Micro Devices, Inc. Stock Is Surging Today

Advanced Micro Devices, Inc. (NASDAQ:AMD) stock is up today on a negative report about rival chipmaker Intel Corporation (NASDAQ:INTC).

The report reveals a major flaw in chips put out by Intel. This flaw can allow hackers to access a person’s passwords. The report claims that this problem is present in some chips made over the last 10 years and that a security update will be needed to fix it.

According to the report, the security update to fix the issue with Intel chips may result in older machines slowing down by as much as 30%. These issues are propelling AMD stock higher today while also causing INTC stock to drop.

Microsoft Corporation (NASDAQ:MSFT) is expected to release a fix for the issue on Windows soon, but there’s no word yet on when Apple Inc. (NASDAQ:AAPL) will have one ready. Several Linux users have also been working to create a patch that will solve the issue.

“This is a potential PR nightmare,” Dan Ives, the head of tech research at GBH Insights, told Bloomberg. “They need to get ahead of this and try to contain any of the damage to customers as well to the brand.”

Intel and Advanced Micro Devices, Inc. are both remaining quiet about the issue. However, several AMD employees have openly said that the problem is only limited to INTC products. As such, the security update won’t be needed for devices using AMD chips.

AMD stock was up 7% and INTC stock was down 4% as of noon Wednesday.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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