AMD denies breakup report

Shares of struggling Sunnyvale chip maker Advanced Micro Devices jumped Monday on a report that it might split into two separate businesses.

An AMD spokeswoman denied that such a move is being considered.

“We remain committed to the long-term strategy we laid out for the company in May at our Financial Analyst Day, which encompasses all parts of the business,” spokeswoman Sarah Youngbauer said in a statement.

The news service Reuters cited three unnamed sources in reporting that AMD is holding “preliminary” discussions of breaking the company into two separate entities and that a consulting firm has been retained as an adviser.

AMD has struggled against rivals in recent years. Intel dominates the server and PC chip business and has battled Nvidia in the market for graphics chips, another part of AMD’s product line.

One option would be to separate AMD’s graphics and licensing business from its server business, Reuters said.

The company’s shares were up 1.55 percent to $2.64 in trading early Monday, but have slid about 35 percent from a year ago.

Photo: AMD headquarters in Sunnyvale (Associated Press)

 

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