AMD's announcement yesterday about spinning off their manufacturing put a whole new perspective on the company, or so investors thought.
After it was revealed that the manufacturing business was bringing in a substantial loss for AMD in trying to compete with Intel, selling part of that unit has sent a clear message to investors. Shortly after the announcement, the company's value skyrocketed, increasing almost 19% in value in just a few hours. Later on the stock would take a step back to close at a more conservative 8.5% gain.
This is coming at a time when most tech companies have seen fairly significant losses in recent days and weeks. Even with the added confidence, AMD has a long road ahead of them.