Advanced Micro Devices Inc. (AMD) shares jumped 0.6% in morning trading on Monday, to buck the looming weakness in semiconductor sector, after the announcement over the weekend, for the availability of a new gaming platform.
Advanced Micro Devices Inc stock was one of only 3 of the PHLX Semiconductor Index’s 30 components that were also gaining the ground.
Chip sector tracker (SOX) also declined 0.7%. On Sunday, Advanced Micro Devices Inc. (AMD) said that the new gaming platform is based on the AMD Radeon RX 5700 series graphics cards and on third-generation Advanced Micro Devices Inc. (AMD)’s Ryzen Desktop Processors. Rosenblatt Securities analyst Hans Mosesmann reiterated his buy rating on AMD and $42 stock price target that is about 32% above the current levels, saying that the new graphic processing units have also received the favorable reviews, as expected.
“All-in-all, AMD is executing to its aggressive targets and we expect momentum to continue when AMD formally launches EPYC2 server CPUs in August and 16-core desktops in September,” Mosesmann wrote in a note to the clients. AMD’s stock has run up 11.2% over the past three months, and has gained 2.8%.