Advanced Micro Devices Shares Blast Higher!

Weekly Options USA Members Make 829% Potential Profit
Using A Weekly CALL Option!

Advanced Micro Devices shares were up 13.7% for the week as of Thursday's close, and were up another 5.55% on Friday, in response to NVIDIA's earnings report.

This set the scene for Weekly Options USA Members to profit by 829% using an AMD Weekly Options trade!

 Join Us And Get The Trades – become a member today!

Friday, May 26, 2023

by Ian Harvey

Prelude…..

Nearly all of Advanced Micro Devices, Inc. (NASDAQ AMD)’s gains came on Thursday in response to NVIDIA's earnings report. The leading GPU (graphics processing unit) maker beat estimates on the top and bottom lines in the first quarter and gave much better guidance than Wall Street had expected in the second quarter, saying that it was ramping up production to match demand for AI chips.

The market interpreted this as good news for AMD as it also makes GPUs and other products for AI workloads, though NVIDIA's are generally considered more powerful. 

AMD reported flat revenue growth in its data-center segment, which would reflect demand for AI chips, and its guidance called for flat sequential growth, indicating it isn't yet seeing the AI boom that NVIDIA is.

Additionally, AMD launched a new lineup of Ryzen and Athlon 7020 C-Series processors, which will go in Google Chromebooks. It also introduced a new Radeon RX 7600 graphics card designed to deliver 1080p gaming experiences.

Finally, Bank of America also raised its price target on the stock from $105 to $120 due to new products expected to roll out at a June 13 event and increasing sector multiples.

Why the Original Advanced Micro Devices Shares Weekly Options Trade was Executed?

On Thursday shares in Advanced Micro Devices, Inc. (NASDAQ AMD) and Micron Technology, Inc. (NASDAQ: MU) provided the biggest boosts to the chip sector, which outperformed the broader market as investors looked for ways to invest in artificial intelligence and in Japan.

Artificial intelligence (AI) is more advanced than ever and could have a tremendous impact on the world over the next decade. AI requires enormous computing power because of how much data it must process quickly.

Advanced Micro Devices should have many opportunities as a leading semiconductor company. Semiconductors are essentially the building blocks of computing systems and will play an important role in building out AI.

The growing demand for AI chips could fuel exciting growth for AMD.

Experts believe that AI could add $13 trillion in economic output to the global economy by 2030. That could translate to big growth in semiconductor stocks, and analysts see years of strong growth ahead for AMD. The average estimate has revenue nearly doubling by 2027 and earnings-per-share (EPS) almost tripling.

AMD acquired programmable-chip specialist Xilinx over a year ago for $49 billion, a company known for its advanced designs. Xilinx should give AMD options in designing products specialized for AI applications. It has an investor event planned for next month to unveil several new products aimed at the data center and AI markets.

The Advanced Micro Devices Weekly Options Trade Explained.....

** OPTION TRADE: Buy AMD JUN 02 2023 110.000 CALLS - price at last close was $2.65 - adjust accordingly.

Obviously the results will vary from trader to trader depending on entry cost and exit price that was undertaken.

Entered the AMD Weekly Options (CALL) Trade on Friday, May 19, 2023, at 9:35, for $1.89.

Sold the AMD weekly options contracts on Friday, May 26, 2023, for $17.55; a potential profit of 829%.

Total Dollar Profit is $1,755 - $189 (cost of contract) = $1,566

Don’t miss out on further trades – become a member today!

The Benefits Of Advances In AI For AMD.....

The roller coaster continued on Wall Street this week as the broader market remained focused on the ongoing drama in Washington, DC, and continued to pin its hopes on an agreement to raise the debt ceiling amid partisan gridlock.

The current state of artificial intelligence (AI) and recent advancements in generative AI has been attracting quite a bit of attention in recent weeks and months. Many investors have wondered how much of the current zeitgeist is fad and how much is based in reality.

Solid results and a stunning forecast from a company that is benefiting from the current trend of AI, helped lift other stocks in the sector -- at least initially.

Summary.....

AMD competes head-to-head with Nvidia in some of the same markets, so its move higher is the most direct correlation. Because AMD makes semiconductors for data centers, cloud computing, and AI, it has a long runway ahead.

The company has steadily gained market share on Intel in the PC market, but NVIDIA could prove to be a tougher competitor. Still, it should get at least some benefit from the AI boom.

Therefore…..

For future trades, join us here at Weekly Options USA, and get the full details on the next trade.

Join us today and find out!

FINALLY.....

CLICK HERE and join our membership.