The Advanced Micro Devices, Inc. (AMD) Stock Rally Is Not Yet Over

Will innovative products and technologies continue to power Advanced Micro Devices, Inc. (NASDAQ:AMD) stock higher in 2017?

– Although AMD’ stock had appreciated by 295.1% in 2016, it still has room to grow.

– AMD has strong growth prospects due to innovative new products and technologies.

– The target price for AMD’s stock of $13 which was suggested recently by top analysts, appears reasonable, in my opinion.

Advanced Micro Devices, Inc. (NASDAQ:AMD) had been by far the best performer in 2016 among all the 413 Russell 3000 tech stocks. Its stock price appreciation of 295.1% in 2016 was significantly higher than the second ranked tech stock NVIDIA Corporation (NASDAQ:NVDA) which gained 223.8% and the third-ranked stock Oclaro, Inc. (NASDAQ:OCLR) which was up 157.2% in 2016.

As such, investors might doubt if the stock still has room to grow, or whether it is time to take the profit and sell the stock. As I see it, due to the company’s very promising new products and applications, the rally is not over, and the stock could go even higher. In fact, two analysts Vijay Rakesh of Mizuho Securities and Mark Lipacis of Jefferies, who are ranked by TipRanks (1) as five-star analysts (the highest rank) according to their performance, recently suggested a target price of $13 for AMD stock. That represents an upside of 15.6% from its January 5, 2016 closing price of $11.24.

New Developments

Advanced Micro Devices, Inc. (NASDAQ:AMD) recently announced very promising new products and technologies, which, in my opinion, could boost revenues and profits and drive its stock higher.

On January 3, 2017, the company announced Radeon FreeSync™ 2 technology, which according to AMD, is the next significant milestone in delivering smooth gameplay and advanced pixel integrity to gamers. The technology will be available to consumers in the first half of 2017. (See also: Deep Learning To Drive Huge Growth For Advanced Micro Devices Inc).

Scott Herkelman, vice president and general manager of gaming, Radeon Technologies Group, AMD, explained:

“Gamers have spoken and they’ve made FreeSync™ the overwhelming choice and definitive industry standard for smooth, stutter-free gaming. Radeon FreeSync™ 2 technology is the first of its kind that combines HDR support with dynamic refresh rate technology, and does it in a seamless, plug-and-play manner that improves gaming quality automatically when the right content is present.”

Earlier, on December 13, 2016, the company unveiled new information about its new high-performance desktop processors which will be launched in the first quarter of 2017. According to AMD, the new processors which are based on the innovative “Zen” core architecture will bring a next-level experience for high-end PC and workstation users.

AMD President and CEO Dr. Lisa Su commented:

“The ‘Zen’ core at the heart of our Ryzen processors is the result of focused execution and thousands of engineering hours designing and delivering a next-level experience for high-end PC and workstation users. Ryzen processors with SenseMI technology represent the bold and determined spirit of innovation that drives everything we do at AMD.”