Benzinga -
- Advanced Micro Devices, Inc (NASDAQ: AMD) shares gained on Monday as reports claimed Microsoft Corp (NASDAQ: MSFT) denied a partnership with the chipmaker for its Athena artificial intelligence chip.
- Reportedly, Frank Shaw, a Microsoft spokesman, denied that AMD is part of Athena. "AMD is a great partner," he said. "However, they are not involved in Athena."
- Also, separate reports suggested that U.S. sanctions compelled the Chinese firms, including Alibaba Group Holding Limited (NASDAQ: BABA), Baidu, Inc (NASDAQ: BIDU) Huawei Technologies Co, Ltd to execute their AI ambitions without the sophisticated American chips from AMD and Nvidia Corp (NASDAQ: NVDA).
- But the move entails very high costs, with experts reserving their doubts over the success of such action.
- Last week AMD reported its upbeat first-quarter earnings, followed by weaker guidance that sparked a sell-off this week.
- AMD's first-quarter revenue came in at $5.35 billion, down 9% year-on-year, beating the consensus of $5.3 billion. The adjusted EPS of $0.60, down 47% Y/Y, beat the consensus of $0.56.
- The stock has gained 47% YTD.
- Price Action: AMD shares traded higher by 5.91% at $95.15 on the last check Monday.
- Photo by cebbi from Pixabay