AMD shares rose 1.30% on Nov. 10 after Anthropic disclosed that AMD plans to invest $2.5 billion in its private placement. Nvidia fell 5.47% the same day, while the S&P 500 and Nasdaq Composite closed lower.
Advanced Micro Devices closed at $515.21, up 1.30%, as the chip designer drew gains from a plan to invest in Anthropic. The stock climbed after a premarket upgrade and fresh AI-chip deal chatter.
AMD to invest $2.5 billion in Anthropic
Anthropic disclosed in an amended IPO filing on Nov. 10 that AMD would be part of a group involved in a $26 billion private placement alongside some of the world's biggest technology companies. AMD plans to invest $2.5 billion worth of non-voting Class N common stock in Anthropic.
That investment counts toward an earlier commitment of up to $5 billion linked to chip deliveries. Trading volume reached 46.7 million shares, about 102% above its three-month average of 23.2 million shares.
Nvidia drops while indexes slip
Chip rivals moved the other way. Nvidia fell 5.47% to $168.89, and Intel dropped 2.09% to $58.13, so AMD outperformed both.
The S&P 500 closed at 7,521, down 0.38%, while the Nasdaq Composite ended at 25,066, down 0.74%.
Nvidia CEO probe pushes investors toward AMD
AMD shares have been on a run this week after Nvidia disclosed an investigation into its CEO, Jensen Huang, over his relationship with an alleged Chinese spy. According to the Motley Fool, Wall Street's fears that Huang could be forced to step down caused investors to shift into AMD stock.
The Motley Fool also points to analyst upgrades and says AMD's business continues to boom. AMD's Nov. 3 earnings showed record quarterly revenue of $13.4 billion, and the company gave Q4 revenue guidance of about $17 billion.
Source: The Motley Fool
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