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AMD bucks tech's downward pull as shares rise
Analysts cite optimism surrounding the chip company's upcoming products
By Benjamin Pimentel, MarketWatch
Last Update: 2:47 PM ET May 7, 2010
SAN FRANCISCO (MarketWatch) - Advanced Micro Devices stood out as one of a handful of winners Friday, as shares of the chip maker rose sharply, bucking the tech sector and broader market's downward spiral.
Two analysts said the gains were apparently based on optimism about AMD's new chips for personal computers that the tech giant is set to introduce on May 12.
AMD AMD was up 28 cents, or 3.4%, to $8.55 in heavy trading Friday afternoon, helping pare down the sector's losses. The Nasdaq Composite Index COMP was down 1.5% to 2,289 after sustaining heavier losses earlier in the day.
"What's driving up shares is optimism in the air," Wedbush analyst Patrick Wang said in an e-mail interview. "I expect bullish comments from their industry partners, anchored by a slew of product announcements and design wins."
In fact, Hewlett-Packard HPQ on Wednesday introduced more than a dozen new notebooks based on AMD's new chip platform.
Aside from the new line of products, Gleacher & Company analyst Doug Freedman also cited AMD's gains in the graphics chip market which, he said in an e-mail, has "investors thinking they can gain share."
AMD is the chief rival of Intel Corp. INTC, the world's biggest maker of PC chips. It also competes Nvidia Corp. NVDA in the graphics chips market.
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