AMD shares going up in the market

Last wednesday AMD's market shares rose with almost nine percent, the biggest increase in the last five years, according to Fudzilla. Analist Doug Freedman of the American Technology Research believes there are two reasons for this surprising increase.

The accusations that Intel has paid companies such as Acer, Dell, Gateway, Hewlett-Packard and IBM to stop them from implementing AMD processors in their computers, seems to be proven with evidence. This is concluded from  documents published by AMD that are being used in the antitrust-lawsuit against Intel. Even though it is expected that Intel is willing to pay a large sum of money to settle the case, it may take years before AMD will actually get any of it.

AMD Fab30 and Fab36 in Dresden

A second reason is that the investors have high expectations of AMD's plans to reorganize. They have spoken of an asset light strategy, which means AMD may possibly turn over the entire or part of the chip production to a third party. The R&D department would then continue as a seperate company. The exact content of these plans has not yet been made public and therefore it is unknown what the consequences will be for the planned production facilities.  All in all, the investors seems to have renewed faith in the company.

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