Advanced Micro Devices Surged 3.98%—Can It Keep Climbing? The AI Chip Price Hike and Earnings Countdown Ignite Frenzy

Summary
• AMD stock soared 4% to $173.1, hitting a 52-week high of $174.7.
• HSBC report cited by South Korean media highlights AMD’s $25,000 AI chip price hike and $15.1 billion sales forecast.
• UBS analyst Timothy Arcuri raised AMD’s price target to $210, citing pre-earnings optimism.

Advanced Micro Devices (AMD) delivered a blockbuster intraday performance, surging 3.98% to $173.1 amid a confluence of bullish catalysts. The stock traded between $168.68 and $174.7, fueled by a strategic AI chip price increase and pre-earnings speculation. With earnings due August 5 and a $25,000 MI350 AI chip now competing with Nvidia’s B200, investors are scrambling to decipher if this is a parabolic setup or a valuation correction.

AI Chip Price Hike Fuels AMD's Bullish Surge
AMD’s 4% rally was ignited by a South Korean news report citing HSBC’s analysis that its Instinct MI350 AI accelerator—recently raised to $25,000—can now rival Nvidia’s Blackwell B200. This pricing power signals confidence in AMD’s ability to capture market share in the AI chip sector, where data center demand is surging. The report projected AMD’s AI chip sales to jump to $15.1 billion in 2025, far exceeding earlier estimates. Analysts like UBS’s Timothy Arcuri have amplified optimism, raising AMD’s price target to $210 and highlighting improved sentiment ahead of earnings.

Semiconductors Rally as AI Demand Surges, NVDA Leads
The semiconductor sector is in the spotlight as AI infrastructure spending accelerates. Nvidia (NVDA) led the charge, rising 1.5% on renewed export rule relaxations for China and a $4 trillion market cap milestone. Meanwhile, TSMC reported record profits from AI-driven demand, and Samsung secured a $16.5 billion Tesla AI chip contract. AMD’s 4% gain outpaced the sector’s broader momentum, driven by its aggressive AI chip pricing and earnings anticipation. However, investors remain cautious about AMD’s diversified product mix versus peers like Nvidia, which dominate GPUs.

Options Playbook: Leverage AMD’s Earnings Volatility with High-Gamma Calls
• 200-day MA: 123.35 (well below current price)
• RSI: 86.46 (overbought)
• MACD: 9.19 (bullish divergence)
• Bollinger Bands: Price at upper band ($169.33) with a 200-day MA as key support at $114.15

AMD’s technicals suggest a short-term bullish breakout, with the 52-week high at $174.7 acting as a critical resistance. The RSI in overbought territory and MACD above zero signal momentum, but the 98.98 P/E ratio highlights valuation risks. Two options stand out for aggressive traders:

• AMD20250801C175 (Call, $175 strike, 8/1 expiry)
– IV: 44.85% (moderate)
– Delta: 0.4318 (moderate sensitivity)
– Theta: -0.9901 (high time decay)
– Gamma: 0.04326 (strong price sensitivity)
– Turnover: $31.58M (liquid)
– Leverage: 61.60% (high potential reward)
– Payoff at 5% upside ($181.76): $6.76/share
– This contract balances moderate delta with high gamma and liquidity, ideal for a short-term rally.

• AMD20250801C177.5 (Call, $177.5 strike, 8/1 expiry)
– IV: 44.98% (moderate)
– Delta: 0.3297 (moderate sensitivity)
– Theta: -0.8152 (high time decay)
– Gamma: 0.03973 (strong price sensitivity)
– Turnover: $6.46M (liquid)
– Leverage: 90.15% (high potential reward)
– Payoff at 5% upside ($181.76): $4.26/share
– This option offers higher leverage and gamma, suiting traders who expect a sharp post-earnings pop.

Hook: If AMD breaks $175, AMD20250801C175 becomes a high-conviction play; watch for a $180 pivot to trigger AMD20250801C177.5.

Backtest Advanced Micro Devices Stock Performance
After an intraday surge of 4% for AMD, the stock has historically shown positive short-to-medium-term gains. The backtest data reveals that the 3-day win rate is 52.27%, the 10-day win rate is 53.73%, and the 30-day win rate is 54.87%. This indicates a higher probability of positive returns in the immediate aftermath of such a surge.

AMD’s AI Parabolic Play: Position for Earnings Volatility Now
AMD’s 4% surge is a pre-earnings frenzy driven by AI chip pricing confidence and sector momentum. The stock’s overbought RSI and high P/E suggest volatility ahead, but the $175–$177.5 options chain offers leveraged avenues for aggressive bulls. With Nvidia (up 1.5%) leading the semiconductor sector, AMD’s earnings on August 5 could either validate its AI ambitions or expose valuation risks. Action: Buy AMD20250801C175 for a 5% upside target or AMD20250801C177.5 for higher leverage. Monitor the $174.7 52-week high as a critical breakout level. If AMD fails to hold $168.68 intraday low, re-evaluate long positions.