Shares of Advanced Micro Devices, Inc. AMD 1.84% have been on fire in 2016, surging 272.3 percent year-to-date. The semiconductor giant is now trading above $10.50/share for the first time since 2007.
Fundamental performance has certainly been a big driver for AMD this year. In the last two quarters, AMD was able to deliver positive revenue growth for the first time in years.
The good news seems to have caught some short sellers by surprise as well. While AMD’s share price has been soaring, the stock’s short interest has plummeted 31.6 percent this year. That means that a part of the stock’s move has likely been fueled by a short squeeze.
According to shortsqueeze.com, there are still more than 82.4 million shares of AMD held short with 1.5 days to cover. That number represents a short percent of float of 10.5 percent.
Stubborn short sellers are hoping that AMD’s positive momentum will be short-lived and the stock’s valuation at multi-year highs has gotten a bit stretched.
AMD is expected to release Q4 numbers on January 17. If the company continues its positive momentum, expect even more short sellers to throw in the towel. If, however, the company takes a step back in Q4, the stock could get…
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