To The Moon

AMD has surged lately amid geopolitical tensions, a CHIPS bill and earnings

Advanced Micro Devices (NASDAQ:AMD)$AMD(AMD)$ sits at the intersection of multiple catalysts, creating crosscurrents that investors might find difficult to navigate. Most recently, the stock slipped in the wake of the semiconductor maker's quarterly results. However, shares immediately bounced back in Thursday's action, putting them on track for their sixth higher finish in the past seven sessions.

Among the other factors impacting investor decision-making, global tensions between China and the U.S. threaten to further exacerbate a chip supply crisis. In part in response to this danger, Washington is working on a CHIPS bill meant to encourage U.S.-based production.

Earlier this week, AMD (AMD) reported strong Q2 earnings. Shares dipped in the immediate aftermath, however, dragged down by concerns about the firm's guidance.

For the latest quarter, the company earned $1.05 a share on $6.55B in revenue. This was aided by 83% growth in data center sales. The chip giant also saw strength in the company's client segment, which includes PC processors, as sales rose 25% year-over-year to $2.2B.

Turning to the macro issues, pressure continues to mount on the semiconductor market with China and the U.S. focused on Taiwan, the home to Taiwan Semiconductor (TSM), a pivotal piece in the chip world. House Speaker Nancy Pelosi went to Taiwan this week, where she met with semiconductor industry leaders.

Adding further fuel is the recent CHIPS Act that has been passed on a bipartisan basis and is expected to go into law. The bill will include $52B in subsidies for domestic production and a previously reported investment tax credit for chip plants. The bill not only will lend support to AMD but to others including NVIDIA (NVDA) and Intel (INTC).

AMD has been on tear recently, although this has only cut losses it posted earlier in the year. Shares are down about 30% for 2022. However, over the past 16 trading sessions, the stock has surged about 36%.

The stock has ended in positive territory in 13 of the last 16 trading days. Meanwhile, the stock has climbed an additional 6% in Thursday's intraday trading.