Advanced Micro Shorts Run for Cover

Business continues to crumble at Advanced Micro Devices(AMD Quote) -- and the beleaguered chipmaker's stock is finally getting some lift.

Shares of AMD gained 4.7% to $13.46 in recent trading Monday, after the company warned investors of a sharp sequential decline in its first-quarter revenue. AMD said revenue will be $475 million below the high end of its initial estimates, coming in at $1.225 billion, as both unit sales and average selling prices continue to plummet.

Investors were quick to finger short-covering as the cause for the curious reaction to AMD's massive revenue miss. ...