Advanced Micro Devices Inc (NASDAQ:AMD) is enjoying a 1.6% lift before the bell, slated to open just shy of $500 after an upgrade from Citigroup to "buy" from "neutral." The firm also hiked its price target to $575 from $470, citing the chip maker's GPU sales and AI growth. Analyst sentiment is already optimistic heading into today, with 36 of the 45 in coverage sporting a "buy" or "strong buy" recommendation.
AMD has pulled back slightly from its June 3 record high of $546.44, still sporting an impressive 128% year-to-date lead. A mid-May pullback was captured by the round $400 level, while the 30-day moving average now sits below as an added layer of support.
Despite its long-term outperformance, short-term options traders have been leaning bearish. This is per the AMD's Schaeffer's put/call open interest ratio (SOIR) of 1.00, which ranks higher than 88% of readings from the past year. Meanwhile, short interest has been on the rise, up 21.9% over the past two reporting periods, accounting for nearly 3% of the stock's available float.
Lastly, the stock sports a lofty Schaeffer's Volatility Scorecard (SVS) of 95 out of 100. This suggests the equity has consistently realized higher-than-expected volatility over the past 12 months.
