Advanced Micro Devices, Inc. (NASDAQ: AMD) has had an incredibly strong start to the new year, closing the day up nearly 7% yesterday and starting the day off with strong gains in the pre-market today. So, what’s going on? Why is it that AMD is making a run for the top? Today, we’ll talk about why the stock is headed up, what we’re seeing in the market, and what we’ll be watching for ahead.
AMD Gains On Semiconductor Industry Association Report
As mentioned above, Advanced Micro Devices has had an incredibly strong start to the year this year with strong gains both yesterday and in today’s pre-market. While the company hasn’t reported anything that is company specific, we’ve found the reason for the gains. Ultimately, market-wide, we’re seeing gains among chip makers like AMD, NVDA, MU, AMAT and others.
The reason for the gains is a relatively simple one. Ultimately, the gains seem to be the result of a report that was issued by the Semiconductor Industry Association, which stated that sales among chip makers like AMD rose dramatically.
According to the report, November sales of chips increased by 21.5% to approximately $37.7 billion. The sales were increasing the fastest in the Americas, gaining 40.2% to $8.77 billion. However, the largest market for chips was China, bringing in a whopping $11.9 billion in sales, which proved to be an increase of 18.5% on a year-over-year basis. In a statement, John Neuffer, Semiconductor Industry Association Chief Executive, had the following to offer:
“The global semiconductor industry reached another key milestone in November, notching its highest-ever monthly sales, and appears poised to reach $400 billion in annual sales for the first time…”
What We’re Seeing From The Stock
With such strong news hitting the chipmaker industry, it only makes sense that many within the industry are seeing strong gains. Of course, one of these stocks is Advanced Micro Devices. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (7:48), AMD is trading at $11.78 after a gain of $0.80 per share (7.29%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AMD. In particular, we’re interested in following the company to see just how well their sales actually did. While the SIA saw notable increases across the market, it will be interesting to see just how big Advanced Micro Devices’ piece of the pie was. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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