Advanced Micro Devices (AMD) stock rebounded on Thursday after the semiconductor company’s stock dropped with the release of its latest earnings report. One bit of news revealed in that report that has investors excited is an ongoing collaboration with Microsoft (MSFT).
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AMD confirmed that it will work with Microsoft to develop system on a chip (SoC) for Microsoft’s Xbox devices. This includes the next-generation Xbox, handheld gaming PCs, and more. Investors are already aware of AMD’s contribution to the ROG Xbox Ally X, a handheld gaming PC coming out later this year. However, the mention of other devices, including PCs, has some wondering if Xbox has plans to release its own line of pre-built gaming PCs.
Xbox has been dedicated to its Game Pass subscription service this console generation, as the Xbox Series X/S hasn’t sold well. With this comes a focus on releasing games on multiple platforms, making any device an Xbox. It could be that the company wants to get into the gaming PC space, which is already popular with Game Pass users. No matter the case, AMD has carved out a space for itself with SoCs for console makers. It also makes these for Sony (SONY) to power the company’s PlayStation devices.
AMD Stock Movement Today
AMD stock was up 5.24% as of Thursday morning, extending a 42.12% year-to-date rally. The shares have also climbed 19.66% higher over the past 12 months. While yesterday’s earnings report took a bit of the wind out of AMD’s sails, today’s movement shows it won’t be hard for the chip company to make up that lost ground.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 25 Buy, 10 Hold, and a single Sell rating over the past three months. With that comes an average AMD stock price target of $161.16, representing a potential 6.12% downside for the shares.
