AMD (AMD) Gets a Lift from New Icahn Stake, Cramer Tout

Shares of Advanced Micro Devices (NYSE: AMD) are getting a boost this morning following two positive new items released late last week. The stock is currently about 5% higher, most recently trading at $2.56.

First, legendary activist investor Carl Icahn disclosed Friday night in the 13F for his Icahn Capital that he purchased 1.6 million shares of AMD over the last quarter. The move is notable as Icahn did not show any holdings in AMD prior to last quarter, making the position a new holding.

Secondly, since first turning negative on Advanced Micro Devices in 2006 amid its price-war with Intel (Nasdaq: INTC), Jim Cramer has finally turned positive on shares of the embattled chipmaker.

The popular market pundit highlighted AMD's stock on Friday's Mad Money, saying he would be a buyer of the stock given that, as of Friday, the stock was trading under its cash value of $2.20 per share. Cramer said AMD's risk/reward is getting more attractive, and believes that AMD can't trade much lower given its 67% slide so far this year. Cramer called shares of AMD "speculative", but noted that it is still competing with chip-bellweather Intel and NVIDIA (Nasdaq: NVDA). Finally, Cramer pointed out that AMD's management has recently shifted its focus from gaining/preserving market share to simple profitability.

Advanced Micro Devices, Inc., a semiconductor company, provides processing solutions for the computing, graphics, and consumer electronics markets in the United States, Canada, Europe, and Asia.

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