AMD stock dives, Intel climbs
Sunnyvale (CA) - Following a rather sobering fourth quarter and a cautious financial outlook for the first half of 2007, investors reacted on Wednesday, sending the AMD stock down about 7% to $16.25, the lowest level since May 2005. Intel’s stock value, which suffered mainly as a result of AMD’s success in processor shipments over the past 18 months, continue its trend of recovery and gained about 1.5% or 35 cents to $20.85.
AMD yesterday reported Q4 losses of $574 million, while Intel achieved net earnings of $1.5 billion in the same timeframe. However, $550 million of AMD’s losses were directly related to charges resulting from the acquisition of ATI, AMD said yesterday.