Xbox 2 Rumor Sends ATI Shares Higher

In a slightly bizarre turn of events, a rumor that appeared to start on UK games site Spong.com, claiming that ATI may be providing the graphics chip for the Xbox 2, replacing current provider Nvidia, has ended up significantly affecting ATI's stock price, sending it up over 5 percent on a day when many other tech stocks lost ground. As an analyst quoted in the Yahoo article suggests, "..we think it's a decision that has not been made yet and it is purely speculation to guess as to who may or may not win." But that doesn't seem to have stopped investors acting as the rumor gathered steam and percolated through more major news sites.

Comments

Not very uncommon

[TripleA]

The whole IT-boom and crash three years ago was all about expectations and rumors too.