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Shares of Advanced Micro Devices (AMD) were surging Tuesday as its new product releases convinced investors and analysts the chipmaker was positioning itself for market share gains.

The stock was rising 9.7% to $28.99 on Tuesday.

AMD released its Ryzen PC CPUs, as well as a new GPU, during its Computex keynote speech delivered by CEO Lisa Su on Sunday. With the release of the new chips, manufactured using Taiwan Semiconductor's (TSM) 7-nanometer processor, AMD is aiming to compete with Intel's (INTC) and Nvidia's (NVDA) similar products. 

Intel shares fell 1.86% to $43.74 on Tuesday, while Nvidia fell 0.32% to $144.65.

Stifel analyst Kevin Cassidy mirrored the market's tone in a note, saying the new chips are a threat to AMD's competition.

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"This announcement represents the first time AMD has taken the desktop CPU lead process technology and performance lead from Intel in its 50-year history, Cassidy wrote. "We expect AMD to accelerate its PC market share gains due to higher performance, lower power usage, lower cost and ease of upgrade (same CPU socket at past generation Ryzen)."

He added that the "market share gains will be at higher than corporate average ASP and higher gross margin, in our estimates," Cassidy said. Stifel will "continue recommending the AMD shares during this strong new product cycle."

Cassidy maintained his $34 price target, representing 17% upside to the stock's current level. He has a buy rating on the stock. 

Wells Fargo said it downgraded Intel to market perform from outperform  in early April partly "driven by our belief that investor sentiment could become more tempered amid increasing visibility into AMD share gain [market share] momentum."

AMD also is slated to launch its "Rome" CPU chip by mid-year 2019, which Su said could deliver massive power to the devices it supplies. 

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