AMD denies reports of its sale
Sunnyvale, CA, United States (4E) – Computer processor maker Advanced Micro Devices Inc. (AMD) denied reports that its up for sale. AMD is the second-largest manufacturer of computer chips behind Intel.
The reports started when the company’s board showed interest in exploring options by hiring JPMorgan Chase & Co. As soon as the rumors of its sale spread, AMD’s stock gained by as much as 18 percent. So far this year AMD’s stock has dipped by as much as 61 percent.
“AMD’s board and management believe that the strategy the company is currently pursuing to drive long-term growth by leveraging AMD’s highly differentiated technology assets is the right approach to enhance shareholder value,” AMD spokesperson Drew Prairie said, according to Bloomberg News.
AMD predicts it will not meet analysts’ estimates for its fourth quarter financial report. The company plans to save resources by cutting back its workforce by 15 percent.
With AMD’s dim forecast for its fourth quarter, the company is headed for its fourth straight disappointing financial report. If its poor performance continues, the company may run out of “cash reserves,” statedSanford C Bernstein & Co.’s analyst Stacy Rasgon.