The biggest question that had traders in chip stocks buzzing this week is finally resolved, with Intel flatly denying the rumor it licensed AMD's graphics technology.
Positive and negative speculation over the rumor sparked daily billion-dollar moves in AMD shares during the past two days.
"The recent rumors that Intel has licensed AMD's graphics technology are untrue," an Intel spokesperson said in a statement to CNBC.
AMD shares surged 12 percent Tuesday after website Fudzilla reported Intel signed a deal to license AMD's graphics technology.
The company's shares then declined 12 percent Wednesday after Wall Street analysts downplayed the report and AMD didn't confirm the deal during its financial analyst day Tuesday.
"Heading into the investor event, mainstream media reports suggested AMD's largest competitor, Intel, may license AMD's graphics IP. However, during the prepared remarks and meetings post-event, we came away with a view that AMD would not likely license core IP to a competitor," JPMorgan analyst Harlan Sur wrote in a note to clients Wednesday.
AMD also declined to comment on the Fudzilla report.
"As a matter of policy we don't comment on rumor or speculation," an AMD spokesperson said in a statement.
AMD was one the best-performing stocks in the market in the past year. Its shares are up 192 percent during the past 12 months compared with the S&P 500's 15 percent return in the same time period.
However, the hot chip stock is down more than 25 percent from its 52-week high, which roughly coincided with the March 2 launch of its new Ryzen line of desktop processors that disappointed some gamers.
Barron's Tech Trader Daily initially reported on Intel denying the AMD deal speculation late Wednesday evening.
AMD shares were off by 3 percent in Thursday premarket trading.