AMD Stock Jumps on New Ryzen Xbox Gaming Chips

Advanced Micro Devices (AMD) stock jumped on Monday after it revealed new gaming chips that will be featured in handheld devices from Microsoft (MSFT). The company announced the Ryzen AI Z2 Extreme and Ryzen Z2 A, which will power Microsoft’s upcoming ROG Xbox Ally X and ROG Xbox Ally. The Ryzen AI Z2 Extreme includes a dedicated Neural Processing Unit (NPU) that works with Microsoft’s Copilot+ AI.

While these chips will be included in Microsoft’s Xbox handheld gaming PCs, they aren’t limited to them. This means more devices could incorporate these new chips to offer additional power for gamers on the go. That might include updates to Asus’ ROG Ally line outside of its collaboration with Xbox, or new devices from Lenovo (LNVGY).

It’s unclear when the first devices featuring AMD’s new Ryzen processors will hit the market. Microsoft says its Asus Xbox handhelds will do so in 2025, but doesn’t provide an exact date. It’s also unclear if other manufacturers are working on devices that feature these chips.

What’s Next for AMD Stock?

AMD is getting ready for its Advancing AI Day later this week. This resulted in updated coverage from five-star Citi analyst Christopher Danely. He maintained a Neutral rating for the stock but increased his price target for the shares to $120 from $100, implying a 0.66% downside.

AMD stock was up 4.09% as of Monday morning and is up 0.12% year-to-date. The increased price target and news of new Xbox handheld consoles with AMD chips acted as positive catalysts for the shares today.

Is AMD Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 22 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $127.24, representing a potential 5.1% upside for the shares.

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