AMD Shares Surge as Xbox Bets Big on Next-Gen Ryzen Chips
Wall Street catches AMD fever—again—as Microsoft locks in Ryzen silicon for its next Xbox refresh. Because nothing makes investors happier than console wars fueling chip demand.
Game on: AMD's stock rockets 8% pre-market on the news, proving even in 2025, the old 'console cycle pump' still works like magic. Analysts whisper 'margin expansion' while quietly eyeing exit prices.
Meanwhile, crypto miners weep into their obsolete GPU rigs—these chips are strictly for headshots and speedruns, not shitcoin farming.
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While these chips will be included in Microsoft’s Xbox handheld gaming PCs, they aren’t limited to them. This means more devices could incorporate these new chips to offer additional power for gamers on the go. That might include updates to Asus’ ROG Ally line outside of its collaboration with Xbox, or new devices from Lenovo (LNVGY).
It’s unclear when the first devices featuring AMD’s new Ryzen processors will hit the market. Microsoft says its Asus Xbox handhelds will do so in 2025, but doesn’t provide an exact date. It’s also unclear if other manufacturers are working on devices that feature these chips.
What’s Next for AMD Stock?
AMD is getting ready for its Advancing AI Day later this week. This resulted in updated coverage from five-star Citi analyst Christopher Danely. He maintained a Neutral rating for the stock but increased his price target for the shares to $120 from $100, implying a 0.66% downside.
AMD stock was up 4.09% as of Monday morning and is up 0.12% year-to-date. The increased price target and news of new Xbox handheld consoles with AMD chips acted as positive catalysts for the shares today.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 22 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $127.24, representing a potential 5.1% upside for the shares.
