There is likely more to come in the partnership between Advanced Micro Devices and Google, according to Cowen.

The back story. On Tuesday, AMD stock soared 11.8% as Alphabet’s Google confirmed it is using AMD (ticker: AMD) graphics technology for its coming Stadia cloud-gaming service. The custom-made AMD graphics cards in Google’s data centers will be more powerful than Sony PlayStation 4 and Microsoft ’s (MSFT) Xbox One X consoles, Google (GOOGL) said during a presentation at the Game Developers Conference.

AMD...