AMD is nearing a 13-year high after Microsoft announced its new Xbox console will be powered by the chipmaker's graphics and computer chips.

Shares gained more than 2% early Monday, and were closing in on their best level March 2006.

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AMD's stock price is closing in on levels not seen for 13 years. Shares of the chipmaker traded as high as $33.95 Monday, less than 1% below their March 2006 peak of $34.14. A move above there would make for the highest print since March 2006.


The resurgence in AMD's shares, up nearly 20 times from their September 2015 level of about $2, has been driven by a series of product-win announcements in the red-hot cloud-gaming market.

Wells Fargo analyst Aaron Rakers wrote the announcement, while previously expected, "should still be considered a positive as it reinforces AMD's positioning in the high-end processor and graphics market for game consoles."

At least one analyst, Morgan Stanley equity analyst Joseph Moore, has shifted their view on the company amidst the spate of product announcements.

"Being cautious on the stock has obviously been the wrong call, even though we were right on some aspects," he wrote.


Moore upgraded the company's shares Thursday to "equal-weight" from "underweight" while also raising the price target from $17 to $28.

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