Advanced Micro Devices Soars 2.26%—Is This the Start of a New AI-Driven Rally?

Summary
• AMD surges 2.26% to $162.235 on robust AI collaboration and U.S. manufacturing optimism
• 52-week high at $174.05, 52-week low at $76.48
• CEO Lisa Su's pro-U.S. manufacturing comments and AI infrastructure tailwinds drive momentum
• Options chain shows aggressive call buying above $160 strike

Advanced Micro Devices (AMD) is trading at its strongest level in weeks, fueled by a strategic partnership with USC to develop the MEGALODON AI model and CEO Lisa Su’s bullish remarks on U.S. manufacturing. The stock has climbed 2.26% to $162.235, trading near its 52-week high, as investors bet on AI-driven growth and geopolitical tailwinds. With a dynamic P/E ratio of 92.75 and a 2.24% turnover rate, AMD’s intraday range of $158.36 to $163.93 reflects heightened volatility.

AI Collaboration and U.S. Manufacturing Narrative Ignite Optimism
AMD’s 2.26% intraday surge is directly tied to its collaboration with Aligned and USC ISI to develop the MEGALODON large language model using its Instinct MI300 GPUs. This partnership underscores AMD’s growing influence in AI infrastructure, a sector projected to see explosive demand. CEO Lisa Su’s recent comments emphasizing U.S. manufacturing resilience and strategic alignment with Trump-era energy policies further amplified investor confidence. The stock’s move aligns with broader semiconductor industry trends, as TSMC’s production delays and AI-driven chip demand create a favorable backdrop for AMD’s data-center expansion.

Semiconductors Sector Gains Momentum Amid AI Infrastructure Surge
The semiconductor sector is experiencing a coordinated rally, with TSMC’s 2-nm production milestones and Samsung’s AI chip struggles reinforcing AMD’s position as a key beneficiary of U.S. manufacturing incentives. Intel (INTC) fell 2.92% as it struggles to secure AI chip orders, highlighting AMD’s competitive edge in data-center growth. Goldman Sachs’ projection of a 160% surge in global data-center demand by 2030 further validates the sector’s long-term potential.

Options and ETFs for Leveraging AMD’s AI-Driven Momentum
• 200-day MA: $123.37 (below) | RSI: 75.59 (overbought) | MACD: 8.66 (bullish) | Bollinger Bands: $129.25–$164.42
• Key Levels: Support at $138.29, resistance at $164.42. A break above $164.42 could trigger a retest of the 52-week high at $174.05.
• ETF Focus: No leveraged ETF data available, but the SPDR S&P Semiconductor ETF (XSD) could mirror AMD’s sector strength.

Top Options Contracts:
• AMD20250801C160
- Type: Call | Strike: $160 | Expiration: 2025-08-01 | IV: 41.79% | Delta: 0.598 | Theta: -0.676 | Gamma: 0.036 | Turnover: $8.59M
- IV: Indicates moderate volatility | Delta: Sensitive to price changes | Theta: High time decay | Gamma: Strong sensitivity to price movement | Turnover: High liquidity
- This call option offers a 37.22% price change potential with a 29.74% leverage ratio. A 5% upside to $170.35 would yield a payoff of $10.35 per contract, making it ideal for aggressive bulls.
• AMD20250801C162.5
- Type: Call | Strike: $162.5 | Expiration: 2025-08-01 | IV: 41.03% | Delta: 0.504 | Theta: -0.611 | Gamma: 0.038 | Turnover: $6.34M
- IV: Moderate volatility | Delta: Balanced sensitivity | Theta: High time decay | Gamma: Strong responsiveness | Turnover: Strong liquidity
- With a 39.12% price change and 39.93% leverage ratio, this contract benefits from AMD’s proximity to the $164.42 upper Bollinger Band. A 5% upside scenario would generate a $7.85 payoff, aligning with the stock’s technical setup.
Action: Aggressive bulls should consider AMD20250801C160 if $164.42 breaks, while AMD20250801C162.5 offers a balanced play on the $174.05 52-week high target.

Backtest Advanced Micro Devices Stock Performance
Following a 2% intraday surge, AMD's historical performance shows positive short-to-medium-term gains, with win rates and returns increasing across 3, 10, and 30 days. The maximum return during the backtest period was 6.01%, suggesting the strategy can lead to favorable outcomes, especially if the positive momentum continues.

AMD’s AI-Driven Rally: Position for a Breakout or Secure Profits?
AMD’s 2.26% rally is underpinned by AI infrastructure growth and U.S. manufacturing tailwinds, with technical indicators suggesting a potential continuation of the upward trend. The stock’s proximity to the upper Bollinger Band and overbought RSI (75.59) signal a possible consolidation phase, but the sector’s resilience—evidenced by Intel’s -2.92% decline—highlights AMD’s competitive edge. Investors should monitor the $164.42 resistance level; a break above this could accelerate the stock toward $174.05. For options traders, the AMD20250801C160 and AMD20250801C162.5 contracts offer high-leverage opportunities in a bullish scenario. Watch for a $164.42 breakout or a pullback to $138.29 support to gauge the next move.