AMD leaps to its first record high in nearly 2 decades

AMD chip

Advanced Micro Devices rallied as much as 7.4% Thursday, hitting an intraday record high for the first time since June 5, 2000.
The chipmaker's surge follows a winning year, as AMD closed out 2019 as the best-performing stock in the S&P 500.
The semiconductor company is positioned to jump in 2020 due to its exposure to next-generation gaming consoles, its focus on both GPU and CPU products, and the inability for Intel and Nvidia to copy many of its key advantages, Rosenblatt Securities analyst Hans Mosesmann wrote in a Tuesday note.
Watch AMD trade live here.

Advanced Micro Devices soared as much as 7.4% Thursday, hitting an intraday record high for the first time in nearly two decades.

The chipmaker passed its previous record of $48.50 for the first time since June 5, 2000, Bloomberg reported. AMD traded as high as $49.25 before falling slightly.

The Thursday surge follows a winning year for AMD, as the company ended 2019 as the best-performing stock in the S&P 500. The company soared nearly 150% during the year.

The chipmaker also helped boost the index's information technology sector to its best yearly gain in a decade. Apple led the gain, jumping roughly 88% on the success of its iPhone 11 and growing wearables business. The sector was the best performing in the S&P 500 and ended the year up nearly 50%.

Analysts are already eyeing AMD as the best-positioned semiconductor stock of the new year. Rosenblatt Securities analyst Hans Mosesmann deemed it his top pick in a Tuesday note, citing the "secular importance" of its popularity in both CPU and GPU markets.

The company is also positioned to benefit from next-generation gaming consoles, its multi-year CPU cycle, and the inability for rivals Intel and Nvidia to copy many of its winning products, Mosesmann wrote.

Rosenblatt listed Micron and Xilinx as its second and third picks, respectively.

The analyst firm reiterated its "buy" rating for the chipmaker and boosted its price target for the stock to $65 from $52. The new price target is the highest among firms covering the company and implies a 33% increase from Tuesday's $49.10 closing price.

The company has 15 "buy" ratings, 23 "hold" ratings, and four "sell" ratings from analysts, with a consensus price target of $36.66, according to Bloomberg data.

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