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AMD stock closed out 2019 as the best-performing stock in the S&P 500.

Yet even with its stunning gains last year, one Wall Street analyst is getting more optimistic over its stock. Advanced Micro Devices (ticker: AMD) makes processors that act as the main computing brains for personal computers, servers, and graphics cards.

The chip maker’s stock rose 148% last year. That performance ranked number one for the entire S&P 500 index for 2019, according to FactSet.

On Thursday, Nomura Instinet analyst David Wong reaffirmed his Buy rating for AMD shares, predicting more chip share gains in 2020. He also raised his price target for the stock to $58 from $40.

“We expect AMD to continue strengthening its competitive position in 2020 through a steady stream of new product introductions on 7nm and 7nm+ technologies,” he wrote.

AMD stock rose 5.6% to $48.44 on Thursday, reaching an all-time high.

Last July, the chip maker launched its latest lineup of 7-nanometer (nm) processors that have gained traction in the marketplace. Its main competitor Intel primarily offers 14nm desktop chips. Smaller-nanometer manufacturing processes have historically allowed semiconductor companies to create faster, more power-efficient chips.

Wong expects a number of new products from AMD this year—including 7nm notebook chips, new graphics chips and an array of 7nm+ desktop processors. As a result, he predicts AMD’s market share for desktop processors will rise to 20% to 25% by year-end versus 18% during the September quarter.

Write to Tae Kim at tae.kim@barrons.com