Shares of chipmaker Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report  soared after Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report announced the particulars for its next generation Xbox game console, confirming that AMD will be supplying some of the hardware behind the new device. 

The console, which is being referred to as Scarlett and has a tentative holiday 2020 release date, will be able to offer 120 frames per second, twice what the average television currently spits out, and will be powered by a custom designed AMD chip. 

The new console's computing system will make Microsoft's follow up to the Xbox One X four times more powerful than its predecessor, Microsoft announced ahead of the annual E3 video game conference over the weekend. 

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Advance Micro Devices shares are up 4.9% to $40 per share Monday. Shares of Microsoft are up 1.67% to $133.62. 

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