Advanced Micro Devices (AMD) stock was up on Wednesday after the semiconductor company revealed its FSR 4 technology will be added to Sony’s (SONY) PlayStation 5 Pro consoles in 2026. This will be an upgrade to the PlayStation Spectral Super Resolution (PSSR), which debuted alongside the powered-up PS5 in 2024. FSR 4 is already available to PC gamers, offering artificial intelligence (AI)-upscaled images for more detailed displays.
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Sony’s decision to integrate AMD’s FSR 4 into the PS5 Pro isn’t too surprising. The technology is the result of the Project Amethyst collaboration between the two companies. This development partnership will also likely lead to new technology that will power the planned PlayStation 6.
Unfortunately, owners of the base PlayStation 5 won’t see the advantages that FSR 4 will offer. That’s due to the console lacking the necessary hardware for this tech. This is also why the game console doesn’t have PSSR support.
AMD Expands Its Video Game Console Dominance
Sony isn’t the only entertainment company that AMD has teamed up with. The company also signed a development deal with Microsoft (MSFT) to develop gaming hardware. This has the company’s semiconductor technology acting as the core of Xbox devices, including the upcoming ROG Xbox Ally X handheld gaming PC.
PlayStation and Xbox both use AMD’s chips for their consoles. The only one of the big three console makers that doesn’t is Nintendo (NTDOF). Its Switch 2 handheld/home console hybrid is powered by Nvidia (NVDA) technology.
AMD stock was up 1.74% as of Wednesday morning and has risen 14.6% year-to-date. However, the shares are still down 16.96% over the past 12 months.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 24 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $133.55, representing a potential 3.51% downside for the shares.
