Stories

AMD benefits from Bitcoin's renewed rise

Data: FactSet; Chart: Axios Visuals

Everything is going right so far this year for Advanced Micro Devices. The company's stock price rose more than 3% on Wednesday, continuing to shake off trade war fears and pushing back towards a 13-year high touched in June.

The state of play: AMD is benefiting from renewed interest in Bitcoin, which has soared to nearly $13,000 per coin. The company doubled down in November when cryptocurrencies were left for dead, launching a spate of new Bitcoin and blockchain tools.

  • The company is also winning on gaming, selected by Microsoft as the chipmaker for its next-generation Xbox console, to be released during the 2020 holiday season. Sony is also expected to use AMD chips in its next PlayStation.

What they're saying: Analysts at Morgan Stanley, long-time bears on the company, said earlier this month they had made the "wrong call" on the stock and raised their price target to $28 a share.

  • Nomura analysts expect "new processor families scheduled for launch by Intel and AMD in 2H19 and 1H20 offer significantly larger steps up in technology and design than products released by the companies in 2018."

Go deeper: Bitcoin is losing its Wall Street buy-in