The shares of Advanced Micro Devices (AMD) are up over 10 per cent to $13.49 per share in Monday's afternoon trading. As of the moment, 32 percent of the graphics chips industry shares belong to the company. It's a big deal considering that the industry is worth billions of dollars.
Meeting The Strategic Objectives
The graphics chipmaking giant has been aiming to climb back up by introducing new chips. According Lisa Su, the AMD CEO, the company was able to meet their strategic objectives in 2016 as it successfully executed product roadmaps, regained share in key markets, strengthened its financial foundation, and delivered annual revenue growth. "As we enter 2017, we are well positioned and on-track to deliver our strongest set of high-performance computing and graphics products in more than a decade," said Su.
According to Wall Street Analyst at Loop Capital Markets, Betsy Van Hees, AMD has set the bar very high in 2017 leaving the company no room for error. The analyst, who has an AMD buy rating recently increased the price target to $12.
Partnership With Long-Time Rival Intel
In addition, there have been reports that AMD is striking up a relationship with long-time rival Intel Corp. Rumor has it that the company will license its graphics chip designs to Intel. Rumors of the licensing deal with Intel have not been addressed by an AMD official.
Van Hees noted AMD's aggressive roll out new products as it is the first time the chipmaker has ever embarked to ramp three new products in a very short amount of time. AMD is will soon be releasing Ryzen, a desktop processor which is based on it's the Zen architecture has been set for an early release in March; Vega, a graphics processing chip will arrive in the second quarter, and a server-based product which is codenamed as Naples.