Why Applied Micro Circuits Corporation (NASDAQ:AMCC) Surged So Much?
The $862 million market capped Applied Micro Circuits Corporation (NASDAQ:AMCC) stock posted a huge 12.8% increase at the browsers during trading yesterday. This follows an equally impressive 8.8% increase during trading over the past one week of trading.
Reasons behind the Surge
The rally in the stock of this integrated semi conductor and integrated circuits maker which reached its crescendo yesterday was kicked off early last week when the company announced that it is putting together a demonstration session for select participants to showcase its “scale out solution” on the sidelines of the Supercomputing Conference during November 20-21.
Post the successful demonstration yesterday, the stock market reacted by pushing the share price of small capped Applied Micro Circuits Corporation (NASDAQ:AMCC) well above its past 30 day high price. At end of trading yesterday, the price of the stock had stabilized at $11.88 per share, taking it 90% up from its 52 week low price point.
Mixed Results in 3Q.
It saw a 19.6% increase in its revenue during the 3Q operations which ended on September 30 in comparison to 3Q12. This surge in income was offset by the company’s net loss from operations also increased by 44% in comparison to 3Q12.
Applied Micro Circuits Corporation (NASDAQ:AMCC) is an emerging tech company which has surged past many established players in term of its technological innovations in the stream of computing and the nascent cloud infrastructure solutions. It has also pioneered new and cost effective solutions for the data centres of top companies in the world. It has also developed a niche for itself in the silicon solutions market and offers customers these new technologies at very competitive pricing. Through its growing product bucket, the firm has managed to post sales of $217 million in the past 12 months and had posted net loss of $110 million.