Advanced Micro Devices Inc. shares peaked at more than 13 years on Tuesday, extending their winning streak to a ninth session, with the launch of a new graphics card that boosts hope that the stock continues to achieve.
AMD, + 3.54%
stock closed 3.5% higher at $ 41.29, the highest since March 2, 2006. It extended its winning streak to a ninth session, gaining 15% in the period.
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The stock had a record high of $ 47.28 in June 2000.
The stock was the best performing and the most active in the S&P 500
as well as Nasdaq-100, on Tuesday.
AMD's 124% gain this year puts the stock comfortably as the biggest winner in S&P, with Lam Research Corp.
up 103%, the number 2 winner. The gains compare to an advance of 25% and 20% respectively for S&P and the Dow Jones Industrial Average
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AMD earlier Tuesday released the new 7-nanometer graphics card, aimed at 3D designers, architects and engineers. This will be among the first 7-nm products to be launched in the next six months in all AMD markets.
"We expect these products to lead to growth over consensus, stock gains, margin expansion and AMD stock appreciation," Cowen analysts said in a note this week.
A "bear case of irrational flooding stands on ever-winding slopes," they said. The stock market may be "lumpy," but investors should do well to keep in mind that "hyper-scale customers and corporate PC vendors don't buy important components without heavy backdrop commitments," the analysts said.
"A lot of work remains to be successful in launching these products … but we believe AMD's 2019/20 product map has been much improved and well on track to increase stock profits, growth and margin expansion for the next quarters," said the.