AMD Hits All-Time High, CEO Sees "Very High" Demand Amid PT Hikes

SPEAKER_1 (0:01)

We are back here on Morning Trade Live and focusing on the chart for AMD shares hitting a new all-time high in today's session. We're up more than 215% year over year. We're up 2.6% right now, $648. And change on AMD.

We've had some comments from Lisa Su about demand. We've had a price target hike from Mizuho. So let's talk about all of this with Alex Coffey. Good morning, Alex. Just walk us through the details to what's driving us higher this morning.

Alex Coffey (0:32)

Yeah, as you mentioned, AMD moving higher, beginning in the pre-market even after CEO Lisa Su delivered a bullish message on AI demand, saying chip demand should remain very high for years to come. Lisa Su said demand continues to outpace supply despite AMD's efforts to ramp production with the company planning significant capacity increases in 2027

These comments come as well as Wall Street, Sam, gets even more constructive on the story. Citi, for one, raised its price target to 800 from 575, while Mizuho lifted its target to 705 from 580

Both those firms point to the rapid adoption of AI agents, including Meta's Muse as major new drivers of compute demand. Analysts say these agentic AI applications could require far more processing power than traditional chatbots, with AMD seen as a key beneficiary through its CPU business. The result is a growing view on the street that the next leg of the AI infrastructure spending could provide another meaningful tailwind for AMD. In real time, it's up about 3% here as it closes in on $650 a share.

SPEAKER_1 (1:48)

All right. Great stuff. Thanks so much for the details here. Obviously, Mizuho taking it to 705 Agenetic AI tailwinds for obviously that move from the bank as well. Really appreciate the details here, Alex. Let's trade it now with Tim Biggam, Option Strategist over at Pilot AI. Good morning, Tim. How would you approach an example trade for AMD today?

Tim Biggam (2:10)

And good morning, Sam. I've been looking at a stock that has broken out to yet another fresh new all-time high here. But the moves are getting a little less emulant, I think, to the upside here. Certainly all the price targets being raised, everyone talking positively. But I'm thinking that the stock is probably due for at least a cool down in the rally here. So I'm just going out to the traditional November option, selling out of the money call spread, take advantage of today's pop in the stock, which to be honest was a little less than the hope for, I think, by most of the bulls out there. Selling the November traditional 750, 760 call spread, getting right around two bucks. So like the return on risk of almost 25 percent here, and give myself 100 point plus upside cushion. Going after earnings, kind of taking advantage of the IVN earnings. We've seen a lot of the earnings come out, and the reaction to the stocks has been less than good. Certainly, the Sandus and Microns kind of embody that. So I think the AI kind of upswing here may start to cool down. Certainly, AI and the chip sector is going to benefit for years to come. But I think the stock prices more than reflect that here, given the price action we're kind of seeing today.

SPEAKER_1 (3:35)

Yeah, I mean, look, bullish comments from Lisa Su about very high demand. You've also, as I mentioned, had Mizuho taking AMD to 705, but also Dell to 650, Intel 114, Sandus, 2050, SMCI to 400, or I should say $43, excuse me. But they're basically putting it down, as I mentioned, to the AI agentic tailwinds, post-meta's news introduction here, and the success that we've seen off the back of that, particularly as to how it pertains to CPU demand. So something to watch. Thoughts on the broader market today, obviously with these all-time highs, Tim.

Tim Biggam (4:13)

Yeah, we're finally seeing the S&P break out to fresh new all-time highs. The Nazis certainly did earlier. The Russell, the red-headed stepchild, I'm starting to like that simply because I'm starting to think maybe the long end of the yield curve starting to maybe get a little push back here, and that will benefit the Russell the most. So I kind of favor the Russell over the S&P and the Nazi going forward here simply because of that huge outperformance. I think it's a way to play the market here, kind of look at relative kind of moves, take advantage of the underperformers, sell the outperformers, look for kind of a go nowhere market given the fact we have rallied to fresh new all time highs on most of the indices.