MARKETS: Xilinx (XLNX) leads the Nasdaq higher, and YF Premium is bullish on AMD
Yahoo Finance's Jared Blikre joins Seana Smith to break down the day's price action in stocks as well as a long in Advanced Micro Devices (AMD), a Yahoo Finance Premium Investment Idea. Not a subscriber? http://finance.yahoo.com/premium-marketing?yahooproperties_editorialv_wcz7njuyytq">Start your free trial to join our next webinar on Wednesday, November 4 at 2:00pm ET live!
Video Transcript
JARED BLIKRE: A mixed market today, but tech really outperforming. So let's take a look at the NASDAQ 100 Heat Map. You can see Apple up over 1%, and then Microsoft, before its earnings, kind of flatlined right now, but is up 1.5% for the day. Amazon really an outperformer, up 2 and 1/2%. Facebook almost there as well.
Looking at that chip space one more time because that AMD Xilinx deal really the story of the day. AMD down 4%. It is an all cash deal. It could be explained by that-- excuse me, not all cash-- all stock deal. It's [? dilutive. ?] And then Xilinx finished the day up 8 and 1/2%, looking for that 25% premium that AMD has promised. But the deal probably won't close until late 2021.
That brings us to my Yahoo Finance Investment Idea of the Day. And guess what? It is AMD. And we're going to take a look at what Argus Research has to say about the deal, after we put on our Premium banner. And they are saying raising the price target to 96. And so, a couple of notes here. And this is based on the recent action that they're buying Xilinx.
AMD is acquiring this company, the leader in programmable logic devices and adaptive SoCs, for $35 billion in an all-stock deal, adding, this company makes AMD the industry's high performance computing leader and increases its total available market to $110 billion. AMD is growing sales and profits much faster than the market-- read Intel. And the Xilinx acquisition represents yet another growth platform for the company.
