Advanced Micro Devices Heats Up Competition With Nvidia

The chipmaker is acquiring ZT Systems for $4.9 billion

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) are 1.8% higher at $151.23 at last glance, following the firm’s latest acquisition. The semiconductor concern today announced plans to acquire ZT Systems for $4.9 billion in a cash and stock deal. The M&A will help the firm expand its artificial intelligence (AI) chips and hardware as it ramps up competition with industry dominator Nvidia (NVDA).

While there’s still a chasm between AMD’s current perch and its March 8 all-time high of $227.30, the security is staging an impressive bounce from its Aug. 5, roughly multi-month low of $121.82. On Friday, Advanced Micro Devices stock secured a second weekly win and is pacing for its fifth daily win in six sessions, as it looks to extend a 44% year-over-year lead. 

The security sports a much more modest 3% year-to-date gain in the near term, which has led to an uptick in bearish activity. At the International Securities Exchange (ISE), Cboe Volatility Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AMD sports a 10-day put/call volume ratio that stands higher than 93% of readings from the past 12 months.

A shift is taking place today, however. Already, 271,000 calls have traded hands, which is double the average intraday volume. New positions are opening at the top 12 most active contracts today, led by the August 155 call.

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