Advanced Micro Devices Inc. shares were on track Tuesday to hit their highest mark in more than 13 years, with the launch of a new graphics card boosting hopes the stock will continue to gain.
AMD AMD, +3.90% stock was poised to end at its best since March 2, 2006, when it closed at $41.33. A close in the black would also stretch AMD’s winning streak to a ninth session, its longest since a nine-day streak in January 2012.
The stock hit a record high of $47.28 in June 2000.
The stock was the most active in the S&P 500 SPX, +0.00% and the Nasdaq-100 on Tuesday, and ninth best performer in the Nasdaq-100.
AMD’s gains of 123% this year puts the stock comfortably as the largest gainer in the S&P, with Lam Research Corp. LRCX, -1.66%, up 104%, the No. 2 gainer. The gains compare with an advance of 25% and 20% for the S&P and the Dow Jones Industrial Average. DJIA, -0.36%
AMD earlier Tuesday launched its new 7-nanometer graphics card, aimed at 3-D designers, architects and engineers. That would be among the first 7nm products set to launch in the next six months across all AMD markets.
“We anticipate these products will drive above-consensus growth, share gains, margin expansion and AMD share appreciation,” analysts at Cowen said in a note this week.
A “bear case of irrational exuberance is standing on increasingly wobbly ground,” they said. The stock trajectory may be “lumpy,” but investors should do well in recalling that “hyperscale customers and enterprise PC vendors do not purchase critical components without heavy behind-the-scenes engagements, the analysts said.
“Much work remains to successfully launch these products … but we believe AMD’s 2019/20 product road maps are much improved and on track to drive share gain, growth and margin expansion for the next several quarters,” they said.