Advanced Micro Devices (AMD) stock rallied on Friday alongside rumors that one of the company’s processors will power Valve’s Steam Deck 2. According to these rumors, Valve will likely use AMD’s leaked Magnus Zen 6 APU in the Steam Deck. This would make sense, as this APU is the same one that rumors claim will power Sony’s (SONY) PlayStation 6 and Microsoft’s (MSFT) next Xbox console.
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Valve has previously mentioned it isn’t interested in updating the Steam Deck until a major power boost is available. Considering the Magnus Zen 6 APU could be used in the next generation of home consoles, it would make sense that Valve would consider it for a Steam Deck 2. Additionally, the company’s Steam Deck now trails behind Nintendo’s (NTDOF) Switch 2 in raw performance, suggesting an upgrade is on the horizon.
However, gamers will likely have to wait at least one more year before they learn anything else about the Steam Deck 2. The Magnus Zen 6 APU reportedly won’t be released until sometime in 2026, meaning Valve might not release its next Steam Deck until sometime after that.
AMD Stock Movement Today
AMD stock was up 1.12% in pre-market trading today, following a 2.19% rally yesterday. The shares have also increased 34.22% year-to-date and 15.81% over the past 12 months. While AI chips have been a large source of this movement, AMD’s efforts to offer budget-friendly chips to gamers have helped it better compete against rivals Nvidia (NVDA) and Intel (INTC), growing its PC gaming market share.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 26 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $145.90, representing a potential 10% downside for the shares.
