AMD Stock Continues to Slide Following Intel Report

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Advanced Micro Devices (NASDAQ:AMD) stock was declining on Wednesday following a report from Intel (NASDAQ:INTC) which revealed that the latter may be ramping up its microchip production efforts.

AMD StockIt’s been a great year for AMD so far as the stock has increased 175% before today, but the stock took a step backwards following the Intel report, which claims that the company will increase production of its 10-nanometer processors in a closer future than the company had previously projected.

BlueFin Research Partners analyst Steve Mullane told Bloomberg that he sent out a note to clients on Tuesday, revealing that Intel’s decision to increase its second-half production levels “suggest upside to analyst revenue estimates for the fourth quarter and first quarter of 2019.”

The note also said that the suppliers believe that the production could be pulled forward by four to six weeks from the original June 2019 timeline due to Intel’s decision to raise production. The move has pushed INTC stock up 2.4% on Wednesday, while causing AMD stock to slide 2.7%.

The stock price of AMD has nearly doubled over the last four months as the company has been really competitive in comparison to Intel, which was facing a chip supply shortage that would benefit AMD in the server and top-tier commercial desktop market.

This is due to the fact that the computer industry is dealing with a shortage of processors, while also seeking to replace Intel’s older processors with AMD.


Article printed from InvestorPlace Media, https://investorplace.com/2018/10/amd-stock-advanced-micro-devices/.

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