Credit-rating agency Moody's upgraded semiconductor company Advanced Micro Devices (AMD) on Wednesday.
Recently, AMD’s stock price plunged following Tuesday’s reports that rival Intel Corp. might be able to solve problems in its 10-nanometer chip production sooner than expected. Nevertheless, Moody’s upgraded AMD's ‘creditworthiness’, citing several factors related to market potential of the latter's products.
According to Moody’s, AMD is currently sampling a 7nm datacenter GPU and 7 nanometer server processors, expected to be launched in 2018 and 2019 respectively. Moody's also attributed its higher rating to AMD’s "improved product positioning" and market strength in the personal computing and video gaming industries that rely on graphics cards for fast-processing. The credit rating agency mentions an improved outlook on AMD’s cash position and balance sheet potential over the next year.
Moody's upgrade led to a slight increase in AMD shares, but they are still trading around -16% lower than their September 14 high. For the year so far, the stock is around +159% high.