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We Said This Was a "Bottom-Feeder's Dream" – And Now You See Why

Just after the start of the New Year, resident tech expert Michael Robinson told us that struggling chipmaker Advanced Micro Devices Inc. (Nasdaq: AMD) was a "bottom-feeder's dream."

Now you see why.

AMD shares soared as much as 16% yesterday, on massive volume, after Wells Fargo analyst David Wong showed that the chip firm's prices have stabilized. He also reiterated his "Outperform" rating on the shares and said the stock was worth $5 to $7 a share.

In other words, Wong made the same prediction to investors that Michael made to you ... four months ago.

"As you've written, Bill, I've kept the faith on this stock for some time, now ... I really believed it was bound to rally against Intel, its chief nemesis," Michael told me after the trading day ended yesterday. "And when you have a major analyst like the gentleman from Wells Fargo predicting a gain of 100% or more on a stock that's selling for less than $5 a share ... well, that's one heck of a catalyst."

Michael is the editor of our Radical Technology Profits research service, and also runs the Era of Radical Change e-letter.

"What's so surprising to me is the astounding jump in volume," Michael said. "By 3:25 PM (EDT) more than 66 million shares had changed hands. That's about 350% of its normal volume over the past three months and equates to the combined total of the other 24 stocks in the NYSE list of Top 25 advancers. Now that's what I call a big rally."

At the market's close, volume was 82.69 million shares - nearly five times the average daily volume of 16.74 million seen over the last 30 days.

After trading as high as $3.28 yesterday, AMD shares ended the day at $3.22, up 14.2%. That's about 21% above where Michael recommended the stock back on Jan. 7, when it closed at $2.67.

As nice as that is, it looks to be just the beginning.

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