From Challenger to Leader: The AI Stock Traders Are Watching Right Now

In the midst of the AI gold rush, one semiconductor company is quietly transforming from challenger to one of the front-runners. With high-performance chips now central to the post-data-center era, this firm has locked in major AI infrastructure deals, expanding beyond PCs into the large-scale compute rigs driving modern machine learning. Meanwhile, its margins are rising, its product roadmap is gaining credibility, and the chart is showing unmistakable signs of life. Momentum is building, the breakout is real, and this is one I believe could keep running.

The chip giant I am highlighting today is Advanced Micro Devices (AMD) — a powerhouse in the semiconductor space that’s finally stepping out of the shadows of its biggest rival and claiming its own spotlight in the AI revolution. After staging a series of decisive breakouts over the past few months, AMD has continued to climb steadily, confirming the strength and durability of its uptrend. What truly pushed it onto my radar today was a fresh momentum signal: the 24/52-day MACD crossing decisively above the 18-day EMA. This is one of my favorite confirmation setups — the kind of technical alignment that often precedes powerful continuation moves. When you pair short-term momentum like this with a clearly defined long-term uptrend, you get a setup that’s both explosive and reliable — the kind of chart pattern every momentum trader dreams of catching early.

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For this setup, I’m looking to target AMD with an in-the-money call debit spread — a strategy that lets me lean into the stock’s powerful uptrend while building in a smart layer of protection against short-term volatility. The stock’s technicals remain firmly bullish, but after such a strong multi-month run and with earnings on the horizon, I want a setup that tilts the odds even more in my favor. With option premiums on the richer side right now, this structure gives me the best of both worlds: defined risk, leveraged reward, and high probability. At current prices, there’s a spread offering a potential 50.8% profit — even if AMD trades sideways, inches higher, or dips as much as 10%+ into expiration. That’s the kind of strategic edge I love to see — a trade that doesn’t need perfection to win.

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Wishing You the Best in Investing Success,