Why AMD Stock rose Today

2021-12-28T13:17:36
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Why AMD Stock rose Today

 

Why AMD Stock rose Today: Semiconductor giant Advanced Micro Devices  stock is up by 5.7%. Is this news good news to make AMD 5% more important?

Evest follows market developments in the following report.

Topics:

What Happened

The Impact of stock rising on Advanced Micro Devices

What are the expectation for AMD 

 

What Happened

 

Semiconductor giant Advanced Micro Devices stock is up by 5.7% the trading after the Christmas holiday .

Interestingly, the explanation for why AMD stocks are up today is  the exact same thing that nagged semiconductor financiers year-round.

 

The Impact of stock rising on Advanced Micro Devices

 

 At this point this story ought to be natural to you.

The entire year, organizations that form things that need semiconductors to run them , which, now ever,
implies everything from PCs to mobile phones to vehicles to children’s toys, have attempted to get an adequate number of semiconductors to make every one of the items that their clients need to 

Indeed, even semiconductor makers are in something of a dilemma.

From one viewpoint, obliged chip supplies mean semiconductor producers can charge more cash for their chips,
yet provided that they have sufficient assembling ability to make those chips in any case. To this end the most recent semiconductor news is such uplifting news for AMD stock.

As Reuters wrote about Thursday, only in front of the Christmas break, AMD had the option to change and broaden its agreement fabricating concurrence with GlobalFoundries (NASDAQ:GFS).

Rather than having GlobalFoundries send just $1.6 billion worth of silicon wafers somewhere in the range of 2022 and 2024, AMD will purchase $2.1 billion in wafers from 2022 to 2025.

 

What are the expectation for AMD

 Obviously, this could  be a preview of “encouraging news, terrible news”  for AMD, given it the thought. From one viewpoint, AMD has stretched out its admittance to GlobalFoundries’, er, foundries for an additional long term. Then again, however, broadening a three-year contract by one year is a 33.3% augmentation on schedule, while the quantity of chips AMD is purchasing over that more drawn out time frame is simply 31.2% more than it was planned to procure over the first three-year stretch of time.

Net-net, that works out to somewhat less admittance to GlobalFoundries’ assembling limit in the fourth year of the agreement than in the first three years. Furthermore one additionally needs to contemplate whether, given the rising costs of semiconductors all around the world, the extra $500 million AMD will be paying for the fourth year, will purchase as enormous a volume of chips as the organization was at that point contracted to obtain in the initial three years of the agreement – – a reality Reuters didn’t elaborate on.

 

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