AMD’s $350 Price Target Is In: This Options Trade Is the Data-Driven Winner

Group 1 - AMD's stock has seen significant growth, rising from a target price of $200 to around $260, with a new high target price of $350 [1][2] - AMD has transitioned from an underdog in the AI chip market to a primary supplier, with data center revenue projected to grow by 60% annually over the next three years [2] - Despite AMD's market capitalization being $386.7 billion compared to Nvidia's $4.7 trillion, analysts remain optimistic about AMD's stock performance [2] Group 2 - The recent price movements and Q3 financials suggest a more favorable environment for selling options rather than buying deep in-the-money call options [3] - Understanding volatility is crucial in options trading, as it affects the pricing of options based on expected price movements of the underlying asset [4] - Historical Volatility (HV) reflects past stock movements, while Implied Volatility (IV) indicates market expectations for future movements, with higher IV leading to higher option prices [5][6]