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

on Morning Trade Live and focusing on thart for AMD shares hitting a new all time high in today's sessi We're morr , $648 and change on AMD. We've had some comments from Lisa about demand. We've had a price target hike from M So let's talk about all of this with Alix Coffee. Good morning Alix. Just walk through the details as to what's driving us higher this morning. Yeah. As you med AMD moving higher. You know beginning in the premarket, even after CEO Lisa Su delivered a bullish message on AI demand, saying chip demand should remain very high for yea come. Lisa Su said demand continues to outpace supp despite AMD's efforts to ramp production, with the comping significant capacity increases in 2027. These comments come as well as e constructive on the story. Citi, for raised its price target to 800 from 5ile Mizuho lifted its target to 705 from 580. Both those firms point to the rapid adoption of AI agents, ing Meta's muse, as major new drivers of compute demand. Analysts say these agentic AI applications could require far more processing power than traditional chat bots, with AMD seen key beneficiary through its CPU business. The result is a gro view on the street that the next leg of the AI infrastructure spending couldde another meaningful tailwind for AMD real, about 3% here, as it closes in on $650 share. All right, great stuff. Thanksoch fd obviously, Mizuho taking it to 705 a genet AI tailwinds are for obviously that move from the bank well. Really appreciate the details here, Alex. Let's trade it now withm t over at pilot AI. Good morning Tim. How would you approach an example trade for AMD today. Yeah. And good morning And looking at a stock that you know has broken out to yet an fresh new all time high here. But the moves are getting atle less ebullient I think to the upside here. Certainly allhe price targets being raised, everyone talking positively. But I'm thinking that the stock is probably due for at least a down in the rally here. So I'm just going out to the traditional November option selling out of the money f today's pop in the stock, which to be honest, was atle less than hoped for, I think, by most of the bulls out there selling the November traditional 757 60 callpread, getting right around two bucks. So like the return on risk omosf point plus upside cushion going after earnings, oftaking d earnings. We've seen a lot ofe e reaction to the stocks has been less than good. Certainly the SanDisk and Micron's kind of embody that.o I think the AI, you know kind of upswing here may start to cool down. Certainly AI and the chip sector is going to benefit for years to come. But think the stock price is more than reflect that here. Given the price actio we're seeing today. Yeah. I mean look bullish comments from Lisa about very high demand. You've also, as I mentioned had Miz T two 705, but also Dell to 6.5 Intel 114 SanDisk 2050 S to me, but the basically43. Excus putting it down. As I mentioned to the AI Agentic tailwinds post Meta's muse introduction here and thess that we've seen off the back of that, particularly as to how it pertai CPU demand. So something to watch. Thoughts on the broaderket. Obviously, with these all time highs. Tim. Yeah, we're finally seeing the S&P breakout to fresh new all time highs. The Nasdaqertainly did earlier. stepchild. I'm starting to like that simply because I'm starting to think may end of the starting to maybe get a littlesl benefit the Russell the most. So I of favor the Russell over the S&P and the Nasdaq forward here simply because of that huge outperformance. I think it's way to play the market here. Kind of look at relative kind of moves. advanta of the underperformers. Sell the outperformers look for kind of e fact we have rallied to fresh newime on most of the indices. Yeah. And broad based sh today a well. I mean the only sector that's in the red right now is healthre. e of those names lagging on the S&P. So all in all pretty ng stae Tim really appreciate it.