Advanced Micro Devices (AMD) - Get Report shares surged more than 3% to $41.24 Tuesday, rising for a ninth consecutive day as the semiconductor producer unveiled new supercomputer, server and cloud computing deals for its latest server CPU line.

The Santa Clarita, Calif., company was the top gainer on both the Nasdaq and the S&P 500 on Tuesday, and its rise marked the stock's longest winning streak since Jan. 27, 2012, according to Dow Jones Market Data.

In a talk with TheStreet

about the announcements,

the head of AMD's server CPU and GPU businesses signaled that the use of a new microarchitecture will help its next-generation server CPUs deliver sizable performance gains.

The new AWS Rome instances are among "the highest-performing cloud computing instances available on the market," said Forrest Norrod, who as GM of AMD's Datacenter and Embedded Solutions Business Group oversees its server CPU and GPU operations.

Among other announcements, AMD said Amazon (AMZN) - Get Report Web Services, which began supporting first-generation Epyc CPUs (codenamed Naples) last year, plans to launch four cloud-computing instances that rely on Rome CPUs and that are focused on computing-intensive workloads.

Wall Street analysts have been raising their price targets for AMD. Wells Fargo analyst Aaron Rakers increased his price target to $48 from $40, noting the chip maker's gains in the server market. He also affirmed his outperform rating.

On Monday, Cowen analyst Matthew Ramsay raised his one-year price target on AMD to $47 from $40 following a recent meeting with CEO Lisa Su, from which he came away "pleasantly surprised at the long-term nature of investor conversations."

Ramsay noted that the positives outweighed the "near-term competitive noise." He added that "AMD's consistent track record of execution under [Su's] leadership, and stable roadmap, is increasingly resonating with customers and investors."

Last week, RBC Capital Markets analyst Mitch Steves raised his price forecast, and on Tuesday Steves said in a note to clients that AMD and Nvidia (NVDA) - Get Report would likely "move the most" if a positive trade deal were to occur.

Short interest -- bets that the stock will drop -- in AMD is still quite very high, coming in at around three times the daily trading volume as of the end of October.

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