AMD Jumps on Spinoff Buzz

SAN FRANCISCO -- Advanced Micro Devices(AMD Quote) shares were up sharply Tuesday on rumors that the chipmaker is getting closer to unveiling its long-awaited restructuring plan.

The money-losing chip firm has promised investors that details about its new manufacturing strategy are coming, and Wall Street was abuzz in speculation Tuesday that AMD may use its annual shareholder meeting later this week to announce the plan.

According to one sell-side analyst, speaking on condition of anonymity, the rumors have AMD splitting into two separate companies, one with in-house chip manufacturing and the other as a purely chip design-focused firm; or perhaps into three companies, with a third spinoff focusing on graphics chips. ...