Several analysts are becoming more optimistic about future market share gains for Advanced Micro Devices.
Jefferies raised its price target to $30 from $22 for AMD shares, citing the chipmaker's technological advantage over Intel. The firm also reiterated its buy rating on the company.
Analyst Mark Lipacis said in a note to clients on Monday that he sees the possibility that by the second half of next year, AMD will have a chip with higher transistor density than Intel for the first time in recent history. "We see this as a foundational shift in competitive dynamics. Meanwhile, our checks also suggest that AMD continues to take share in high-end notebooks," he wrote.
AMD shares rose 11.5 percent Tuesday.
The chipmaker's stock is significantly outperforming the market this year. Its shares are up 144.8 percent year to date through Friday versus the S&P 500's 8.5 percent gain. AMD is the top-performing stock in the S&P 500 this year.