AMD Shares Are Trading Higher: What's Going On?

Shares of Advanced Micro Devices, Inc. (NASDAQ: AMD) are trading higher midday Thursday after it was announced that Dan Loeb’s Third Point Management opened a passive stake in the semiconductor designer.

Loeb’s firm says it employs a flexible, opportunistic investment style, seeking to identify situations with a recognizable catalyst. Third Point opened the position when AMD shares were struggling, CNBC reported — this could have been in early January when the stock was trading around the $62 to $65 level.

AMD is up 24% year-to-date.

The semiconductor company issued an earnings beat on Feb 22, reporting EPS of 88 cents on revenues of $6.01 billion, both ahead of consensus estimates.

The investment by Loeb’s Third Point could be seen as an artificial intelligence play, as AI has been the buzz word on the Street since ChatGPT arrived, and AMD is joining the trend by releasing a dedicated AI chip.

AMD Price Action: Shares of AMD were up 1.8% at the time of writing, according to Benzinga Pro.

Photo courtesy of AMD.