By Claudia Assis, MarketWatch
Advanced Micro Devices Inc. shares ended at their highest in more than 13 years on Tuesday, extending their winning streak to a ninth session, with the launch of a new graphics card boosting hopes the stock will continue to gain.
AMD /zigman2/quotes/208144392/composite AMD +2.03% stock closed 3.5% higher at $41.29, its highest since March 2, 2006. It extended its winning streak to a ninth session, gaining 15% in the period.
The stock hit a record high of $47.28 in June 2000.
The stock was the best performing and the most active in the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.59% , as well as the Nasdaq-100, on Tuesday.
AMD’s gains of 124% this year put the stock comfortably as the largest gainer in the S&P, with Lam Research Corp. /zigman2/quotes/208077897/composite LRCX +3.48% , up 103%, the No. 2 gainer. The gains compare with an advance of 25% and 20%, respectively, for the S&P and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.78% .
AMD earlier Tuesday launched its new 7-nanometer graphics card, aimed at 3-D designers, architects and engineers. That would be among the first 7-nm 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.