Share price of Advanced Micro Devices, Inc. (AMD Quick QuoteAMD - Free Report) rallied to a new 52-week high of $12.08, eventually closing a tad lower at $12.07 on Dec 27. This represents a phenomenal one-year return of 286%, over the Zacks  Electronics Semiconductors industry’s return of 48.6% during the same period.

Advanced Micro has a market cap of $10.73 billion and it carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Factors

AMD’s reported licensing deal with Intel (INTC Quick QuoteINTC - Free Report) the company to gain more traction in the GPU space and close the market share gap with close rival NVIDIA (NVDA Quick QuoteNVDA - Free Report) .

In this regard, we note that AMD’s Radeon Pro GPUs are in demand, as the company announced a partnership with online retail giant Alibaba for the supply of GPUs for its cloud services.

AMD’s FirePro server GPUs have also been selected by Alphabet Inc.'s (GOOGL Quick QuoteGOOGL - Free Report) Google to power its cloud platform in 2017, which again indicates the growing adoption of the company’s products.

However, increased costs related to product introductions are likely to impact the company’s near-term profitability.

ADV MICRO DEV Price and Consensus

ADV MICRO DEV Price and Consensus | ADV MICRO DEV Quote

Estimate Revisions

The Zacks Consensus Estimate for AMD’s current year has remained stable at a loss of 24 cents over the last 60 days.

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