Chip Stock Surges on Share Buyback, Saudi Arabia Deal

Group 1 - Advanced Micro Devices Inc (AMD) announced a $6 billion share buyback program, leading to a 7.2$120.53 [1] - AMD is collaborating with other chipmakers, including Nvidia, on a partnership with HUMAIN, a new AI venture in Saudi Arabia [1] - The stock is experiencing its sixth consecutive day of gains and is trading at its highest levels since January, with a current price around breakeven for 2025 [2] Group 2 - AMD's stock has rallied from a two-year low of $76.48 on April 8, but is now considered "overbought" with a 14-day relative strength index (RSI) of 90.2 [2] - In the options market, there has been significant activity with 415,000 calls and 137,000 puts exchanged, which is six times the typical volume [3] - The May 25 call option is the most popular, with new positions being opened, and AMD's Schaeffer's Volatility Index (SVI) of 41% is in the low 11th percentile of its annual range, indicating reasonably priced contracts [3]