Why AMD Stock Just Lit Up 4%
Reports of the end of the semiconductor chip shortage may have been greatly exaggerated -- at least, according to one analyst.
Remember how earlier this week, Investors Business Daily cited a TrendForce report on the "relatively high levels of DRAM inventory" it was seeing at PC manufacturers, and the impending decline in chip prices in the fourth quarter of this year? Remember how investors panicked, thinking this might mean that the worldwide shortage of microchips might suddenly evaporate in less than six months' time? Remember how shares of Micron (NASDAQ: MU) and Nvidia (NASDAQ: NVDA) dropped suddenly on the news?
Well all that might have changed yesterday, when a completely different report came out on Bloomberg. And it might be the reason that Micron, Nvidia, and especially Advanced Micro Devices (NASDAQ: AMD) stock -- up 3.7% as of 12:45 p.m. EDT -- are gaining today.
Source Fool.com
