Why Advanced Micro Devices Climbed 17% in October
Shares of Advanced Micro Devices (NASDAQ: AMD) climbed 17% in October, according to data from S&P Global Market Intelligence. The rising chipmaker benefited from the easing of tensions between the United States and China, as well as a solid third-quarter earnings report and bullish guidance for the current quarter.
The first bit of good news for AMD happened on Oct. 11, when the Trump administration announced the broad outlines of a "trade truce" with China and suspended a tariff increase that had been scheduled for Oct. 15.
That helped AMD's stock, because semiconductors have been front and center in the U.S.-China trade war, since China is a big buyer of chips and much of the world's technology supply chain runs through the country. As such, any good news on the trade front is generally a big plus for semiconductor stocks.
Source Fool.com
