AMD shares jump ahead of EU ruling on Intel
SAN FRANCISCO May 11 (Reuters) - Shares of Advanced Micro Devices Inc (AMD.N) jumped almost 8 percent on Monday on news that European regulators were preparing to fine larger rival Intel Corp (INTC.O) for anti-competitive practices.
The European Commission is set to rule on Wednesday that Intel paid computer makers not to use AMD chips in certain products, according to sources familiar with the matter. [nLA487575]
While the nature of the enforcement action against Intel, including the size of the fine, remain unclear, "it's obviously being seen as a positive for AMD," said UBS analyst Uche Orji.
Shares of AMD surged 7.9 percent to $4.24 in late afternoon trading on the New York Stock Exchange. The chipmaker's stock price has more than doubled since mid-February.
Shares of Intel were up 8 cents at $15.37.
"It helps AMD a little bit. But I don't think it's significant enough to change the competitive view of both companies," said Orji, saying Intel will continue to enjoy an advantage in the marketplace thanks to its current superior chip architecture.
Intel is the world's No. 1 maker of the x86-based microprocessors used in PCs and servers, with roughly 78 percent market share. AMD had 20.9 percent share in the first quarter, according to Mercury Research.
(Reporting by Alexei Oreskovic; Editing by Brian Moss)
((alexei.oreskovic@thomsonreuters.com; +1 415 677 2511; alexei.oreskovic.reuters.com@reuters.net)) Keywords: AMD/ SHARES
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