Submitted by The_OG_Steve t3_10je5rv in wallstreetbets
First off, lets compare AMD to NVDA, They are always correlated and have the same peak to trough. As we can see in the image below, AMD is lagging SIGNIFICANTLY to NVDA in their relief rally. It makes no sense for one to be lagging when they are basically the same.
So we just had a good earnings report from the chip manufacturer TSM.
Here we can see that compared to Q3, the Q4 sales of HPC which are the chips AMD sells are up 6%.
TAILWINDS: We have a massive tailwind narrative going into this year with all the OPENGPT hype. Everyone and their moms are talking about AI. And you know who makes these chips? AMD AND NVDA.
https://www.engadget.com/microsoft-openai-supercomputer-azure-150001119.html
​
AMD has earnings next week, and the IV on February 17th calls are HISTORICALLY LOW. The IV are these contracts are nearly yearly lows. I saw a stat its around the 17th percentile with 100 being the highest YoY.
NOW, look at the price for AMD OTM contracts. You can pick up the FEB 17 95C for .10. TEN FUCKING CENTS. If they have a good earnings next week, and the stock is already rallying today, we could see 90 dollars by NEXT WEEK.
This stock could rally to 100 by the end of the expiration. This is a 50x opportunity.