The semiconductor sector is on fire today thanks to strong earnings. The surge is helping push Advanced Micro Devices, Inc. (NASDAQ:AMD) to new highs, earlier the stock hitting a fresh 13-year peak of $39.37. This brings the chipmaker's year-to-date gain to 109%, and puts it on pace for a seventh straight weekly win.
Schaeffer's Senior Quantitative Analyst Rocky White took a look at AMD's trading history to see how this win streak stacks up to others from the past, and what it could mean for the equity could going forward. It turns out that this is the 15th time the stock has had a weekly winning streak of seven or longer, with the longest ever running to 10 weeks back in 2018. On closer look, Advanced Micro Devices has averaged a three-month gain of 11.6% after weekly winning streaks of seven or longer, but it's only been positive for that stretch half the time.
Analysts also continue to raise their expectations on AMD. RBC this morning boosted its price target to $55 from $40, writing that it expects data center demand to continue to improve, likely helping the shares to close out the year strong. This still leaves most analysts on the bearish side, since 13 of 22 in coverage have handed out tepid "hold" recommendations.
In the options pits, calls have been a popular choice, but it's worth noting that peak open interest in the soon-to-be front-month December series is at the 29 put. Now actually looks like a nice time to buy premium on AMD, as its Schaeffer's Volatility Index (SVI) of 39% ranks in the 3rd annual percentile, pointing to low volatility expectations at the moment.