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Buy AMD, Short-sellers spiking the market
AMD is getting sued because of poorer than expected sales of Llano APUs in which investors were lead to believe it would be a great success. However, Someone brought up a good point. We are about to hear the quarterly earning reports for AMD on Tuseday that has had well... A stellar quarter. AMD GPUs are not being produced fast enough and the PS4 and Xbox One started selling. The accusation is that in order to drum up fear on AMD stock they performed this lawsuit in order to buy before the quarterly earning reports are announced, then sell when it spikes.
Comments
That's an interesting analysis, though AMD is already trading near its highest price in the last two years.
The Llano lawsuit struck me as strange, too, as that's a very old and long-discontinued part three generations before the current one. While AMD did overestimate the demand for Llano, it's pretty clear that they believed their own estimates, as that's why Llano parts are still around to be bought. If you underestimate demand, you don't produce enough, and they sell out fast.