Advanced Micro Devices shares price shot up with heavy buying volume after it announced that it was collaborating with Alibaba Group Holding Ltd. to build out the Chinese e-commerce giant’s cloud computing services.
AMD share price shot up by 4.2% in afternoon trade with a high of USD 7+. Volume topped 60 million shares, enough to make the shares the most actively traded on the Nasdaq exchange, according to FactSet.
“Working closely with industry leaders like Alibaba Cloud helps ensure the investments AMD is making in our high-performance graphics and computing datacenter products continue to align with the needs of the broader cloud market,” said AMD Chief Executive Lisa Su.
The news comes a week before AMD is scheduled to report third-quarter results, after the Oct. 20 closing bell.
Analysts surveyed by FactSet expect, on average, AMD to break even during the quarter, compared with a loss of 17 cents a share in the same period a year ago.That would be the first time AMD didn’t report a quarterly loss since the fourth quarter of 2004. Revenue is expected to rise to $1.21 billion from $1.061 billion.
AMD’s stock has run up 31% over the past three months. So far this year, AMD shares have more than doubled, while the PHLX Semiconductor Index SOX, +0.79% has climbed 22% year to date and the S&P 500 SPX, +0.02% has tacked on 4.6%.
Alibaba’s stock has surged 25% year-to-date, while AMD rival Intel Corp. shares INTC, +1.30% have gained 8.7%.