Shares of AMD (AMD) have weakened in early trading after CTS Labs, a cyber-security research firm and consultancy, released a report that it said details “multiple critical security vulnerabilities and manufacturer backdoors” in AMD’s latest processors.
WHAT’S NEW: Earlier this morning, CTS Labs announced that it has produced a white paper detailing multiple critical security vulnerabilities and manufacturer backdoors it said that it found in AMD’s latest EPYC, Ryzen, Ryzen Pro, and Ryzen Mobile processors. These vulnerabilities, which CTS said it also shared with AMD, Microsoft (MSFT), HP (HPQ), Dell, select security companies and “relevant U.S. regulators,” have the potential to put organizations at “significantly increased risk of cyber-attacks,” CTS stated.
WHAT’S NOTABLE: The alleged flaws found with AMD’s chips calls to mind the “Spectre” and “Meltdown” security flaws that were publicly reported by Intel (INTC) on January 3. On January 25, along with Intel’s earnings report, Intel CEO Brian Krzanich said on the company’s associated call that his teams were working around the clock to address security concerns and have made some progress.
SHORT SELLER REPORT: Following CTS’ press release, and launch of the website “amdflaws.com,” short-selling research firm Viceroy Research published its own report, in which it stated in part: “We believe AMD is worth $0.00 and will have no choice but to file for Chapter 11” bankruptcy protection in order to effectively deal with the repercussions of the discoveries made by CTS.
PRICE ACTION: In early trading, AMD has slid 12c, or 1%, to $11.40 per share.
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