NEW YORK (TheStreet) – Shares of Advanced Micro Devices (AMD - Get Report) have taken a sharp downward turn, falling more than 18% following the release of the company's second-quarter financial results.
Prior to the announcement, Advanced Micro stock, which has soared 24% in three months, had been a relative outperformed. This compares to 4% and 5% gains for chip stocks like Nvidia (NVDA) and Texas Instruments (TXN), respectively.
From Thursday's closing price of $4.57, Advanced Micro shares are up 18% on the year to date. Those gains, however, have evaporated quickly. The stock closed Friday at $3.83, down 16%. This is nothing more than a gross overreaction to numbers that were -- in my opinion -- actually better than expected.
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