Advanced Micro Devices, Inc. (NASDAQ: AMD) is having a rough day today, and for good reason. Recently, news broke of a potential deal coming in which the company would be entering into a license agreement with Intel (INTC). However, today, analysts are out with a vengeance, saying that this deal is not going to happen. As a result, the stock is falling, prompting our partners at Trade Ideas to alert us to the losses. At the moment (10:41), AMD is trading at $11.89 per share after a loss of $0.86 per share or 6.75% thus far today.
AMD Is Down, But It’s Far From Out
As mentioned above, Advanced Micro Devices is having a rough day in the market at the moment after analysts have started to shoot down the possible deal with Intel. While the deal would have definitely been a positive for the company, it is not the end all, be all. In fact, regardless of the deal with Intel, the stock could do very well ahead.
You see, the big story surrounding AMD at the moment is Ryzen. This is a piece of technology that competes directly with Intel, and really anyone else in the game. The interesting thing here is that while Ryzen is held as equal to or better than anything else on the market, AMD has the ability to make the product for a relatively low cost. In fact, it’s capable of making Ryzen for less than the Intel competing product.
That’s great news for Advanced Micro Devices. After all, if the company is able to make its product, one that is equal to or better than anything else on the market, for less than the competitors pay to make theirs, well AMD has a leg up in the market. With all of that said, I’m not too concerned about the INTC deal not happening. After all, it’s a classic case of “If you can’t join ’em, beat ’em” and AMD has all the ammunition in the world to do just that!
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on AMD. In particular, we’re interested in following the company through the sale of Ryzen and expecting that this will be an overwhelmingly positive product for the company. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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