AMD Soars on News it Will Service Google’s New Gaming Platform

Steve Miller

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 

amd stock research outlook google news investment analysis march 19

For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.

Twitter:  @askslim

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.