Advanced Micro Devices Inc. is shaping up to be the juggernaut of 2018, as shares surged to close at highs not seen in more than a decade Tuesday after Wall Street’s most bullish analyst on the stock gained some company.
AMD AMD, +11.48% shares rallied to close up more than 11% at $28.06, near their intraday high of $28.11, their highest close since June 6, 2006, when they finished at $28.95. Tuesday was the best one-day percentage gain for the stock since May 16, 2017, when AMD announced its Epyc and Radeon chip lines to take on Intel Corp. INTC, -0.97% and Nvidia Corp. NVDA, +1.08%
More than 190 million shares traded hands Tuesday, making the stock the most heavily traded on the S&P 500 index SPX, -0.17% at nearly four times the volume of the next most heavily traded stock on the index.
Shares surged after two analysts, Mark Lipacis from Jefferies and Matthew Ramsay at Cowen, both hiked their price targets on AMD to $30 after meeting with AMD executives.
Ramsay, who has an outperform rating on the stock, said Intel’s problems this year have largely benefitted AMD — namely, Intel’s delayed rollout of chips and processor security issues that appear to have largely affected Intel chips. Intel shares finished down 1%, and are up 3.9% on the year.
Lipacis, who has a buy on AMD, said he believes the company will ship server chips with a higher transistor density than Intel’s “for the first time in recent history, if not ever.”
“For most of the past 12 years, Intel has executed near flawlessly, as AMD often stumbled and lost share,” Lipacis said in a note. “Intel’s manufacturing lead led to smaller, cheaper, lower power