AMD and Xilinx: Trading the Stocks Amid Acquisition Talks


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.

Nvidia and AMD are holdings in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells NVDA or AMD? Learn more now.

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.

Source Article