Advanced Micro Devices is having a very good day.
The Sunnyvale-Calif.-based chipmaker's stock is up over 36 percent as of noon, hovering around $3.57.
Investors are likely responding to two things that emerged during yesterday's earnings announcement from AMD: the fact that the company posted higher sales and lower losses than analysts expected, and news of a new licensing agreement and joint venture in China that will bring AMD $293 million, plus future royalties.
This good news is sorely needed at AMD, which is going through a rough patch. It hasn't had a profitable year since 2011, had to conduct layoffs last year, and faces formidable competitors Intel Corp. and Nvidia Corp.
AMD makes graphics chips and computer processors and is trying to find new revenue streams to replace the money lost from declining PC sales as more consumers turn to mobile or tablets.
By the way, AMD's fortunes matter a lot in Central Texas. AMD employs about 1,500 in the area, making them one of the largest tech employers. Most of its senior executives are in Austin.
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