Advanced Micro Devices (AMD) stock was on the move Monday after the semiconductor company was targeted in a lawsuit from licensing company Adeia (ADEA). According to the company’s lawsuit, which was filed in the U.S. District Court for the Western District of Texas, AMD has “incorporated and made extensive use of Adeia’s patented semiconductor innovations.”
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Adeia’s lawsuit against AMD argues that the company has infringed on 10 of its patents connected to its semiconductor intellectual property portfolio, including seven patents tied to hybrid bonding technology and three related to advanced process node technology. Adeia argued that this infringement has “greatly contributed to [AMD’s] success as a market leader.”
It’s unclear how AMD will respond to the lawsuit from Adeia. From Adeia’s own press release, it claims to have sought resolutions with AMD without a lawsuit. However, the company noted these attempts didn’t bear fruit. It also stated that it will still be willing to reach an agreement with AMD outside the lawsuit.
AMD & ADEA Stock Movements Today
AMD stock was up 0.37% on Monday, extending a 112.87% year-to-date rally. The shares have also increased 82.02% over the past 12 months.
Adeia stock was down 18.25% on Monday but was still up 0.22% year-to-date. The stock has also rallied 35.89% over the past 12 months. Investors will note that the fall of ADEA stock comes alongside its latest earnings report.
AMD vs. ADEA Stock: Which Stock Do Analysts Prefer?
Turning to the TipRanks stock comparison tool, traders can see which of these two stocks analysts favor. ADEA stock has the higher analysts’ consensus rating at Strong Buy, compared to AMD’s Moderate Buy rating. Adeia also has the higher upside potential at 41.02%, compared to a possible 1.69% downside for AMD stock.
