AMD and Xilinx: Trading the Stocks Amid Acquisition Talks

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Advanced Micro Devices  (AMD) – Get Report and Xilinx  (XLNX) – Get Report were on the move Friday as a possible acquisition was in the works.

Shares of Xilinx were up almost 17% at one point Friday on news that AMD was working toward a $30 billion takeout of the company. For its part, AMD stock had fallen about 4% on the news.

The news is coming in fast and furious, with TheStreet’s own Jim Cramer suggesting that Xilinx may not be interested in a buyout.

All of this comes after Nvidia’s  (NVDA) – Get Report recent announcement that it will acquire Arm Inc. in a $40 billion deal. Clearly both Nvidia and AMD are looking to spread their dominance and grow through M&A.

What do the charts make of the news? Let’s look.

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Trading AMD

Daily chart of AMD stock.

Daily chart of AMD stock.

On Thursday, AMD stock was rallying into resistance near $87.50. To see Friday’s rejection isn’t all that surprising, although how it acts from here will be interesting.

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