Direxion Daily Semiconductor Bull 3X Shares (NYSEArca: SOXL), a leveraged exchange traded fund following the chip sector, was the biggest percentage gainer in ETFs on Friday with a nearly 8% rally.
The sector jumped after Advanced Micro Devices (NYSE: AMD) reported strong quarterly earnings. The stock soared nearly 20% in afternoon trading Friday as Wall Street applauded the company’s third-quarter sales outlook.
AMD is still looking for a replacement for its chief executive, who stepped down earlier this year.
“While the CEO search dragged on, for the most part AMD continued to execute. Second-quarter results were in line, with growth in notebooks offsetting a likely further loss in share in servers,” BMO Capital Markets said.
“Advanced Micro Devices benefited from a rebound in microprocessor demand in 2010 after suffering a cyclical downturn in 2009. Although the firm faces some long-term competitive obstacles from Intel (NasdaqGS: INTC), we believe it will have an opportunity to win back market share from its larger rival in 2011,” Morningstar analysts added in a note.