Advanced Micro Rises on Report JPMorgan Exploring Sale
Advanced Micro Devices Inc. (AMD), the second-largest maker of processors for personal computers, rose the most in two months after Reuters reported that the company hired JPMorgan Chase & Co. (JPM) to explore options including a sale.
The shares advanced 5 percent to $2.09 at the close in New York. Earlier, they surged as much as 18 percent to $2.35 for the biggest intraday gain since July 2011. AMD pared its decline for the year to 61 percent.
AMD is considering a sale, as well as options for its patent portfolio, Reuters said, citing sources familiar with the situation. Drew Prairie, a spokesman for the company, wasn’t immediately available for comment. Tasha Pelio, a spokeswoman for JPMorgan, declined to comment.
Last month, AMD forecast fourth-quarter sales that fell short of analysts’s estimates and said it would cut 15 percent of its staff, citing weak demand across all product lines in a challenging economic environment. AMD joined other makers of computer components suffering fallout from sluggish growth and a shift in consumer tastes toward mobile devices, away from traditional desktop and laptop machines. The forecast revision followed the resignation, announced in September, of Chief Financial Officer Thomas Seifert.
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