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Tuesday, January 26, 2021

AMD Stock’s Short Interest Doubles In A Month As Expected

A detailed analysis of Advanced Micro Devices, Inc. (AMD) stocks show that the short interest of the company has recently taken a turn. Last month there was a rumor regarding AMD’s acquisition of XLNX or Xilinx. This rumor was caused when AMD posted an article noting its intent to acquire Xilinx. This event was to be a turning point for AMD stock. And just as expected, a month later AMD stock’s short-interest rate almost doubled.

AMD’s intent article to buy XLNX came along with its earnings result for Q3. After that the company had laid out an impressive Q4 guidance for 2020 that led to meaningful results for AMD stock. The short interest data came in last week for the settlement date (11/13) and it showed impressive results.

AMD Stocks’ Short Interest Surges About 125%

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NASDAQ: AMD stock’s short interest has risen by approximately 125%. This means that the company has seen an increase of about 33.5 million shares. And the company is seeing such figures almost after 6 months. Short interest has gone above 60, like it was in May. Moreover, these updates brought more good news for the company as AMD stocks saw a double-digit increase in its millions owing to the latest updates.

AMD also saw an increase in its days-to-cover ratio that rose to 1.30 approximately for the first time since 2020 February.

On the other hand, Xilinx has seen an almost opposite reaction in the past month, that is, the company faced a short interest decline. The company currently has a 3.5 million short and a days-to-cover ratio of 0.78. This decline comes after the company had 5 months of above 3.00 days-to-cover ratio.

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In the case of AMD, the company is likely to post $9.5 billion for FY2020, i.e., almost a 41% growth. AMD stocks expect further growth in 2021. 

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