The company’s stock is up more than 50% in 2019.

Morgan Stanley upgraded Advanced Micro Devices from underweight to equal weight. Analysts also raised the price target from $17 to $28 per share. On Thursday morning, the company’s shares rose more than 3% in premarket trading.

AMD’s stock is up 88% from a year earlier and 59% year to date. The company was actually the best-performing stock in the S&P 500 in 2018.

A Morgan Stanley analyst expects AMD’s revenue to grow to 21% by 2020 and that earnings per share will increase from 76 cents to $1.01.

Positive drivers for AMD

AMD is a semiconductor company that develops technology for business and consumer markets. AMD consistently performs well, even against competitors like Intel and Nvidia.

According to Morgan Stanley analyst Joseph Moore, the company has a lot of positive catalysts going for it and is well-positioned for growth in 2020. For instance, the company continues to make headlines as it forms strategic partnerships with new companies.

Amazon Web Services already uses the company’s cloud server chips. And on Monday, AMD announced it is forming a multiyear partnership with Samsung.

AMD will license its graphics technology to be used in mobile devices and smartphones. In return, Samsung will pay royalties and licensing fees.

The company’s graphics are already used across PC and gaming consoles, which has been a key growth driver. In March, Google announced it is using a custom AMD graphics processor for its cloud gaming project. Considering the company’s history, Moore said he thinks that a gaming partnership with Microsoft could be in the cards for AMD.

These recent partnerships may not actually contribute to a huge revenue increase for the company. But they do show an increased level of confidence in AMD. And it also shows that the company is flexible and able to enter into new markets.

Final thoughts

Advanced Micro Devices has seen a lot of ups and downs with its stock over the past year. At various points throughout 2018, the company’s shares have fallen by as much as 50% only to rebound at a later date.

But momentum does seem to be on its side right now. If the company can continue to expand its current product line and enter into new markets, it should see continued growth for the remainder of 2019.