Advanced Micro Devices Inc. (AMD) is rallying Wednesday, March 7, on rumors it might once again be the subject of a takeover bid.
AMD shares jumped more than 4% to $12.24 by the market close Wednesday on trading volume more than double AMD's average. Earlier in the session, AMD stock was higher by as much as 9%, AMD's biggest single-day climb since Jan. 3.
The sharp increase in the stock prices comes amid unsubstantiated takeover chatter that has been making the rounds among traders Wednesday, according to a number of news outlets. This wouldn't be the first time AMD has become the subject of takeover rumors -- the chipmaker's stock surged in October 2017 on similar rumors.
As the possibility of a takeover sent shares soaring, AMD's total call option volume reached a level more than twice the 20-day average, according to Bloomberg data.
On Wednesday, 20,000 April $13 calls appear to have been sold for about $1.17 vs. open interest of about 64,900, Bloomberg found. At the same time, 20,000 April $13 puts appear to have been bought for $1.37 vs. open interest of about 43,100. Within a minute and a half of the options trades, 2 million shares of AMD traded for about $12.77.
AMD stock has fallen more than 8% in the last 12 months but has rallied more than 19% since the start of this year.
TheStreet has reached out to AMD for a comment, but at time of publication had not yet heard back.