The Ratings Game: AMD stock keeps rising amid push into Amazon cloud, valuation debate

Advanced Micro Devices Inc. shares rallied for a second day Wednesday after the chip maker named Amazon.com Inc. as a datacenter chip customer along with other product announcements Tuesday, but analysts were divided on how the company’s rollout of new products would jibe with its valuation.

AMD AMD, +5.61% shares surged 5.6% Wednesday for a week-to-date gain of 8%. In comparison, the PHLX Semiconductor SOX, +1.19% gained 1.1%% Wednesday, the S&P 500 index SPX, +2.12% gained 2.1%, and the tech-heavy Nasdaq Composite Index COMP, +2.64% added 2.6%.

The rally started Tuesday after AMD announced Amazon Web Services’ Elastic Compute Cloud, or EC2, was now using AMD’s Epyc datacenter chips.

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