Advanced Micro Devices (NASDAQ: AMD) soared 11% on Tuesday, after Google (NASDAQ: GOOGL) confirmed it will provide the semiconductors to power its new gaming service Stadia.
We see further potential based on our Fibonacci extension target zone starting at $28.
Morgan Stanley had first told its clients that AMD semiconductors would power Google’s new Stadia gaming platform. Google confirmed the news at the Game Developers Conference. This forthcoming service will allow users to play streaming video games using the Chrome browser.
Analyst Joseph Moore said that, “We continue to be impressed by AMD’s progress at using innovative approaches to expand its markets in all segments.”
In analyzing the market cycles for AMD, we can see that the stock is in the rising phase of its current cycle and likely still has some upside potential.
Our projection is around $28 before it hits our Fib extension target zone. We expect it to correct towards the end of the cycle in June.
Advanced Micro Devices (AMD) Stock Weekly Chart
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