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Wall Street Roundup

AMD stock surges on split rumors

May 07, 2008|From Times Wire Services

Shares of Advanced Micro Devices Inc., the second-largest maker of personal-computer processors, surged the most in more than three months on speculation that it was close to announcing plans to split up the company.

Advanced Micro rose 59 cents, or 9%, to $7.12. For the year, the stock is down 5.1%.

Investors are betting that the company will soon announce details of a plan to separate its manufacturing business from its chip design and development operations, according to CRT Capital Group analyst Ashok Kumar. "The Street has been waiting with bated breath."

Chief Executive Hector Ruiz said a year ago he was exploring ways to cut costs and return to profitability in a strategy he dubbed "asset smart."

AMD, based in Sunnyvale, Calif., will hold its annual investor meeting Thursday in Austin, Texas.

AMD reported a sixth straight quarterly loss last month as it struggled to compete with industry leader Intel Corp.

The first-quarter net loss narrowed to $358 million from $611 million a year earlier.

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