AMD (AMD) Stock Jumps on Closing of 'Asset Smart' Deal with ATIC and Mubadala Development

Shares of Advanced Micro Devices (NYSE: AMD) have surged today, erasing losses from yesterday's 8.25% drop. The stock most recently traded at $2.15, up 7% from yesterday's close.

Traders are buying the stock following news late last night that the company has closed its Asset Smart strategic transaction with the Advanced Technology Investment Company and Mubadala Development Company of Abu Dhabi. According to AMD, the deal has set the stage for the formal launch of the world's only U.S.-headquartered semiconductor foundry, temporarily called "The Foundry Company".

AMD received $700 million from ATIC for a portion of its ownership interests in The Foundry Company, The Foundry Company assumed responsibility for the repayment of approximately $1.1 billion of associated AMD debt, and Mubadala paid AMD approximately $125 million for 58 million newly issued AMD shares and warrants for 35 million additional shares.

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