AMD is surging after announcing a new data-center graphics card (AMD)

AMD on Sunday announced a new graphics card aimed at data center users.
The stock surged in trading Monday, hitting its highest price in over a decade.
Follow AMD's stock price in real-time here.

Shares of AMD surged as much as 12% Monday, hitting an 11-year high of $27.30, after the company on Sunday announced a new high-performance graphics card for data centers. It later pared some of those gains and was trading up about 7%.

The Radeon Pro V340 card is intended to help speed up CAD software, rendering, and virtualization for enterprise users, and has 32 GB of memory. it should be available by the fourth quarter, the company said.

"As the flagship of our new Radeon Pro V-series product line, the Radeon Pro V340 graphics card employs advanced security features and helps to cost effectively deliver and accelerate modern visualization workloads from the datacenter,” Ogi Brkic, general manager of Radeon Pro at AMD, said in a press release.

AMD has been on a hot streak since its second-quarter earnings beat in July, which sent shares surging more than 6%. An upgrade from Rosenblatt Securities last week further catalyzed the rally that has helped the chip maker post seven straight days of gains, it's longest streak in about two years.

Shares of AMD are now up more than 121% in the past year, but Wall Street thinks the gains may be short-lived. Analysts polled by Bloomberg have an average price target of $18 a share — 29% below where they're currently trading.