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Advanced Micro Devices Heats Up Competition With Nvidia

There's a shift taking place in the options pits

Deputy Editor
Aug 19, 2024 at 11:00 AM
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Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) are 1.8% higher at $151.23 at last glance, following the firm's latest acquisition. The semiconductor concern today announced plans to acquire ZT Systems for $4.9 billion in a cash and stock deal. The M&A will help the firm expand its artificial intelligence (AI) chips and hardware as it ramps up competition with industry dominator Nvidia (NVDA).

While there's still a chasm between AMD's current perch and its March 8 all-time high of $227.30, the security is staging an impressive bounce from its Aug. 5, roughly multi-month low of $121.82. On Friday, Advanced Micro Devices stock secured a second weekly win and is pacing for its fifth daily win in six sessions, as it looks to extend a 44% year-over-year lead. 

The security sports a much more modest 3% year-to-date gain in the near term, which has led to an uptick in bearish activity. At the International Securities Exchange (ISE), Cboe Volatility Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AMD sports a 10-day put/call volume ratio that stands higher than 93% of readings from the past 12 months.

A shift is taking place today, however. Already, 271,000 calls have traded hands, which is double the average intraday volume. New positions are opening at the top 12 most active contracts today, led by the August 155 call.

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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