AMD Shares Surge 1.88%, Options Volume Surges Amid Upgrade to Buy

Advanced Micro Devices (AMD) shares rose 1.88% to $146.88, driven by moderately bullish activity and an upgrade to Buy at HSBC. Options volume increased, with calls leading puts and implied volatility above the 52-week median. Put-call skew steepened, indicating increased demand for downside protection.

Advanced Micro Devices (AMD) shares experienced a significant upward movement on July 2, 2025, rising by 1.88% to settle around $146.88. The increase was driven by moderately bullish activity and a positive upgrade from HSBC analysts. The brokerage firm upgraded AMD's stock rating to "Buy" and raised its price target to $200, citing the company's advancing AI chip portfolio and strong market performance in the GPU and CPU sectors [1].

The upgrade comes on the heels of AMD's landmark agreement with HUMAIN, Saudi Arabia's new AI enterprise, to build a global AI infrastructure network. The partnership, which involves an investment of up to $10 billion over five years, aims to deploy 500 megawatts of AI compute capacity [2]. This strategic alliance underscores AMD's growing influence in the AI computing market and its potential for long-term growth.

In addition to the HSBC upgrade, AMD's stock has benefited from increased options trading activity. On July 2, 2025, 787,000 options contracts were exchanged, with calls leading puts and an implied volatility level (IV30) rising to 49.55, exceeding its 52-week median [3]. The steepening of the put-call skew indicates an increased demand for downside protection, suggesting that investors are positioning themselves for potential volatility in the stock's price.

However, AMD faces several challenges that could impact its growth trajectory. Supply chain constraints, particularly the limited availability of CoWoS capacity from TSMC, could limit revenue growth. Additionally, competition from established players like NVIDIA and Intel poses a significant threat to AMD's market share. Despite these risks, AMD's strong fundamentals and AI chip momentum make it an attractive investment opportunity for those willing to bet on its execution.

References:
[1] https://finance.yahoo.com/news/hsbc-upgrades-amd-ai-chip-145404249.html
[2] https://www.ainvest.com/news/amd-stock-surges-hsbc-boosts-price-target-200-2507/
[3] https://www.gurufocus.com/news/2972961/amd-shares-experience-bullish-momentum-with-high-options-activity--amd-stock-news