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 NVIDIA has a commanding lead in 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 (Assoiated Press)
