AMD Joins Nvidia, Tesla in Five Most Active Options as Shares Rebound

$Advanced Micro Devices(AMD)$   joined $NVIDIA Corp(NVDA)$   and $Tesla Motors(TSLA)$   in the five most active stock options Friday as semiconductor companies' strong exposure to artificial intelligence (AI) build outs offer some shield against the negative impact from tariffs.

The two biggest block trades tied to AMD on Friday were the call options that give the holders the right to buy a total of 200,000 shares at $95 each by Nov. 21. The two trades were posted 43 seconds apart during the first half hour of the trading day. 

Total volume for AMD options, including puts and calls, reached more than 769,000 contracts, surpassing the 20-day average of 540,339, according to data compiled by Bloomberg. That landed AMD in the fifth slot for the most active stock option, behind Nvidia, $Tesla (TSLA.US)$, $Apple (AAPL.US)$ , and $Strategy (MSTR.US)$ . 

AMD is estimated to have a low-to-medium indirect impact on demand for chips from U.S. tariffs, with their major chip supply chains in Taiwan and Malaysia, Bloomberg Intelligence analysts Kunjan Sobhani and Oscar Hernandez Tejada wrote in a note Friday. They also face low-to-medium hit from China's retaliatory tariff, they said. 

AI-focused players seem "most insulated, supported by enterprise demand," chip scale package (CSP) -driven AI build outs, and low price elasticity,” the Bloomberg Intelligence analysts said. 

More than half of AMD's revenue in the fourth quarter that ended in December came from data centers. That segment had an operating margin of about 30%, data compiled by Bloomberg show. 

AMD shares climbed as much as 6.8% to $94.76 on Friday, slightly recovering from a recent sell-off that sent the stock tumbling almost 27% this year through Thursday. Shares closed 5.3% higher at $93.40. 

"Chipmakers tied to data centers are exposed to the best financially positioned customers on the planet and prospects tied to AI are extremely encouraging," CFRA analyst Angelo Zino, who has a buy rating on AMD, said in a note April 5. "We believe the semiconductor industry will witness a supercycle over the next decade as content growth per device across a host of markets accelerates, driven by the emergence of greater AI capabilities."

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