The Ratings Game: AMD’s stock powers up toward 13-year high, as Microsoft’s new Xbox provides a boost

Shares of Advanced Micro Devices Inc. powered higher in active trade Monday toward a 13-year high, boosted by Microsoft Corp.’s announcement that its next-generation Xbox gaming console will use AMD chips.

Microsoft MSFT, +1.70% said over the weekend that “Project Scarlett,” the code name for its new Xbox console that is set to arrive during the 2020 holiday season, will be powered by “custom-designed” AMD processors. Microsoft said the new Xbox will allow users to stream games from their Xbox One consoles to a mobile device.

“While AMD’s positioning in Microsoft’s next-gen Xbox has been expected, we think this should still be considered positive as it reinforces AMD’s positioning in the high-end processor and graphics market for game consoles (Microsoft’s ‘Project Scarlett’ and Sony’s PS5 consoles),” analyst Aaron Rakers at Wells Fargo wrote in a note to clients.

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