What Is Fueling The AMD Rally?

Shares of Advanced Micro Devices Inc. AMD extended gains to a fifth straight day and closed 3.6% higher in Tuesday’s regular trading session.

What Happened: Advanced Micro Devices shares also hit a new 52-week high of $114.85 on Tuesday after the chipmaker announced the availability of its new AMD Radeon PRO W6000X series GPUs for Apple Inc.’s AAPL Mac Pro desktop computers.

In addition, the company’s shares likely benefited after Bloomberg reported that UK regulators may block rival chipmaker Nvidia Corp.’s NVDA $40 billion acquisition of UK-based chipmaker Arm Ltd. due to national security concerns.

See Also: How This Trader Is Playing AMD Following The Breakout

Momentum From Q2 Results: AMD’s shares have been picked up momentum after the company reported better-than-expected second-quarter results last week.

Retail Interest: AMD is seeing high interest from retail investors and was the third-most discussed stock on Reddit’s r/WallStreetBets forum as of Tuesday night. The forum, which has 10.7 million users, is best known for driving the rally in GameStop Corp. GME and other heavily shorted stocks earlier this year.

See also: How to Buy AMD Stock

Intel Production Woes: In June, CNBC host Cramer noted that Intel Corp. INTC delaying production of one of its newest chips, code-named Sapphire Rapids, was “another reason” to buy shares in AMD. The delay by Intel is seen as creating an opportunity for AMD to gain market share.

High-Profile Customers: AMD secured Tesla Inc. TSLA and Alphabet Inc. GOOG GOOGL subsidiary Google as its high-profile customers in June.

Price Action: Advanced Micro Devices shares closed 3.6% higher in Tuesday’s regular trading session at $112.56.

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