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Adeia Stock (ADEA) Jumps on a Deal with AMD
Adeia ADEA +7.75% ▲ stock soared on Monday after the consumer and entertainment product and solutions licensing company announced a multi-year license agreement with chipmaker Advanced Micro Devices AMD +1.91% ▲ . This agreement covers Adeia’s semiconductor intellectual property (IP) portfolio and settles litigation between the two companies.
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Adeia filed a lawsuit against AMD in November, which claimed the CPU and GPU maker used its IP in the creation of its chips. The litigation covered 10 of Adeia’s patents, which Adeia claimed led to AMD’s success in the semiconductor space. Adeia had also claimed that it sought to reach a resolution without a lawsuit, but was unsuccessful in that endeavor.
Paul E. Davis, CEO of Adeia, said, “We are pleased to reach this agreement with AMD, a global leader in high-performance computing and advanced semiconductor solutions. Resolving our disputes allows both companies to move forward and creates an opportunity for exploring future collaborations on advanced semiconductor technologies.”
Adeia Stock Movement Today
Adeia stock was up 4.58% on Monday, extending an 18.72% rally year-to-date. The shares have also increased 40.72% over the past 12 months.
AMD stock was also up today, with a 1.94% gain as of this writing. The shares have fallen 8.41% year-to-date, but were still up 99.14% over the past 12 months.
While both of these stocks were up today, neither has experienced unusual trading volume. Both are still below their three-month average daily trading volumes.
ADEA vs. AMD: Which Stock Is the Better Investment?
Turning to the TipRanks stock comparison tool, traders can see which of these two stocks analysts favor. Adeia has the better analysts’ consensus rating at Strong Buy, compared to a Moderate Buy rating for AMD. However, AMD’s upside potential is higher at 45.89%, compared to 32.97% for ADEA stock.
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