Advanced Micro Devices Inc. (AMD) shares recorded their best day in 18 months Friday after larger rival Intel Corp. (INTC) surprised investors with news that its competing 7-nanometer chip would be delayed by at least six months because of manufacturing issues. On Friday, AMD shares closed up 16.5% at a record $69.40, while Intel shares finished down 16.2% at $50.59. AMD shares closed at a higher price than Intel's for the first time ever on Wednesday, by 74 cents, only to fall back below Intel's price on Thursday, but Friday's close firmly widened that gap in AMD's favor. Late Thursday, ( ) Intel said it may have to reach out to third-party manufacturers to produce 7-nm chips, which AMD already sells, because of a "defect mode," pushing a possible release out to late 2022 or early 2023. Additionally, U.S. traded shares of Taiwan Semiconductor Manufacturing Co. (2330.TW), which manufacturers chips for AMD and other chip designers, surged 9.7% to close at $73.90. Several chip-sector analysts issued downgrades and price target cuts to Intel ( ), while conceding that AMD had the most to gain from Intel's woes.
-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 24, 2020 16:11 ET (20:11 GMT)
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