Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Advanced Micro Devices (AMD 1.33%) have skyrocketed today by as much as 12% following a number of analyst upgrades.
So what: Merrill Lynch and Canaccord Genuity both boosted their respective ratings on AMD to "buy." Merrill more than doubled its price target from $2.50 to $6, and Canaccord did likewise by raising its valuation from $3 to $5. Both analysts are optimistic about the opportunity in next-generation game consoles.
Now what: With Microsoft's Xbox One and Sony's PlayStation 4 both using AMD chips, the next-generation consoles could help bring AMD back into the black, according to Merrill analyst Vivek Arya. There could be pent-up demand that could fend off competition from casual mobile platforms. Console generations last numerous years, so AMD's win could yield many years of recurring revenues.
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