Advanced Micro Devices, Inc. (AMD)

Shares of AMD had a regular trading session on Thursday, January 11th, 2017. Shares traded in their daily average range and closed up 18 cents on the day at $12.14.

However, news was announced by the company in the after market hours that that drove this year’s down nearly 4%. She has closed the 8 p.m. aftermarket session at $11.75 which was down 3.21%.

The Catalyst

The reason for the sell off in the shares in the after market session arises due to the fact that the company disclosed if there are in fact security issues related to something called the Spectre Vulnerability on their microprocessors.

Company Comments

“While we believe that AMD’s processor architectures make it difficult to exploit Variant 2, we continue to work closely with the industry on this threat. We have defined additional steps through a combination of processor microcode updates and OS patches that we will make available to AMD customers and partners to further mitigate the threat. AMD will make optional microcode updates available to our customers and partners for Ryzen and EPYC processors starting this week. We expect to make updates available for our previous generation products over the coming weeks.”

The Chart

The above price chart shows AMD during the regular session on the left and the aftermarket session on the right. It is easy to see that when the news came out about the security issues, shares sold off pretty sharply and then rebounded and closing just off the lows.