Advanced Micro Devices Inc. (NYSE: AMD) is surging on Wednesday with a double-digit percentage gain in the price of the stock. What is interesting is that the move is not really from breaking news issued by the company. This looks like it may be a technical move driven by speculators and traders more than by serious new long-term institutional investors.
Wells Fargo analyst David Wong wrote that the company debuted two more “FX” series microprocessors and that AMD has also made some changes to its processor pricing list. His current rating outperform and he has a price target range that is still in the $5 to $7 price range from when we asked “Dear Mr. Analyst, Can AMD Really Double?”
What is interesting is that the rise in the price of AMD stock is up 14% at $3.23 and the trading volume is about 4-times normal trading volume. The price cuts on the processors has garnered more news, perhaps in that the lower prices may actually boost demand.
Today’s boost gets AMD stock up to levels not seen since last October. There really does seem to be more of a move here from traders and investors playing a technical share price breakout versus a news trade spiking this stock higher.