20% Below Its Previous Peak—Is AMD Ready for the Next Big Bounce?
NVDA when $90 not many wanted. At $125 everyone wants.
AMD at $120 not many wanted. At $155 everyone wants.
Yet, some savvy investors have already cashed in with over $2,450 in gains or doubled their money through options trading. 💰
Let’s find out!
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Congratulations to @Victor0408 for achieving a stellar 100% return by selling AMD puts! 👏👏👏
If you have valuable trading insights, don’t hesitate to share your experience in the comments below! 💡
Why AMD?
AMD has captured significant market share from $Intel(INTC)$, taking over 24% of the CPU server market in just seven years. Over the past decade, AMD’s revenue has quadrupled from $5.5 billion to over $22 billion, while Intel’s growth has stalled at $56 billion.
With Nvidia delaying the launch of its Blackwell AI chips, AMD has a golden opportunity to seize more market share and capitalize on the growing demand for AI infrastructure. AMD's advanced products, particularly the MI300 accelerators, have already captured significant use cases and market share among major tech companies. Many are counting on Nvidia’s delayed Blackwell chips to meet the insatiable demand for AI GPUs, but AMD might just fill that gap, entering markets previously dominated by Nvidia.
AMD’s growth trajectory mirrors Nvidia’s path when the AI boom began 18 months ago. Currently, AMD’s PEG ratio is a low 0.94, well below the industry median of 1.83. This widespread pessimism mirrors Nvidia’s situation about 18 months ago, just before their stock took off. If AMD’s PEG ratio converges with the industry median, we could see a potential 94.68% rise in its stock price, possibly aligning AMD with Nvidia’s previous performance.
Comparing stock performance, NVDA is just 7% away from its previous high, while AMD still has 20% to go after the recent sell-off.
Where do you think AMD will rebound this time?
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A breakout above $148.78-$153.60 could push the stock to $161.81-$164.46, targeting the previous all-time high and downtrend resistance, with a 10.16% potential gain.
AMD jumping today after announcing a $4.9B deal to buy server maker ZT Systems... but how much will this acquisition really help the stock?