Advanced Micro Devices Rallies Off Chip Deal With Alibaba

Advanced Micro Devices, Inc. AMD shares are trading higher by $0.54 (8.3 percent) at $7.03 in Friday's session.

The catalyst for the rally is the announcement that the company has reached a deal with Alibaba Group Holding Ltd BABA to use AMD chips in its cloud service.

The rally from the pre-market session has carried over into the regular session. After a higher open, it retreated only a dime to $6.82 before breaking into the $7 handle, as the current high stands at $7.05.

If the rally continues, based on the daily charts, the potential resistance area may be its October 3 high of $7.15. he issue has not closed above $7 since September 6 when it ended the session at $7.34.