Why does amd stock price shadow intels?

[imhotepmp]

Even after beating the expectations, and bursting record sales and profits, amd's price continued to drop. Now today after Intel "beats lowered expectation" both goes up! Why is this? Why does the price shadow intel? Intel goes up, amd goes up. Intel goes down, amd goes down. What are these investors thinking? If intel does well, amd will too? They're competitors! One doing good is definitely bad for the other.

imhotepmp

 

[whooosh]

I would think that investors know crap about CPUs and how they compare. Intel has brainwashed them into thinking that AMD is a follower. So if Intel gets screwed, the investor would think that AMD is getting screwed also, reguardless of what earnings are.

my 2 pennies worth

Whooosh

 

[Wangel]

Both companies have had recent price cuts to compete with each other.

 

[AMD4SPEED]

AMD Share Price Investigation. Check it out!!!
Linkified

 

[atomicbomberman]

mainly because investor is looking at the market as a whole. I mean.. becuase Intel still control the majority of the market, a loss in profit on intel's side can be looks as a general srink of the chip market, of course the investor knows beans about cpus an stuff, but hey, I guess just a group of them just sorta gather around and say.. hmm.. I think the prosperity is over, time for the bear market again! =)

 

[Double Trouble]

Investors don't have to know about CPUs and L2 latency, any more than I have to know about planing corn to know that a bumper crop reduces prices in the marketplace.

Intel is still by far the biggest player in it's market, and since AMD and Intel share the market, they are both generally gonna move in the same direction. If AMD at some point actually becomes even close to half the size of Intel, you might see the market capitalization and stock prices start to diverge a little.