AMD Options Market Sees Bullish Bets on 80% Surge by 2027

Options traders are placing significant, long-term bullish bets on Advanced Micro Devices (AMD), with complex trades suggesting a belief that the company's stock could surge more than 80% by late 2027. The activity comes as AMD shares touched a fresh 52-week high of $615.99 intraday on Thursday, closing at $609.77.

Sophisticated Bullish Trades Emerge

Thursday's options volume for AMD was heavy, with 1.1 million contracts changing hands and a call-to-put ratio of approximately 1.52, indicating a strong preference for bullish positions, according to data from Investing.com. This level of activity suggests directional conviction rather than routine hedging.

The most notable transaction was a sophisticated diagonal spread involving 6,000 contracts. This trade structure targets a price between $1,020 by September 2027 and $1,120 by December 2027, representing a potential upside of 67% to 84% from current levels. Other significant bullish trades included large blocks of out-of-the-money calls expiring in 2026 and 2027.

AI Growth Story Fuels Long-Term Bets

This long-dated positioning appears tied to Wall Street's multi-year forecasts for AMD's role in the artificial intelligence market. The 2027 expiration dates align with analyst expectations for a significant AI revenue cycle. According to the source, analysts at Citi have projected AMD's AI revenue could reach $33 billion in 2027, while Mizuho has forecast production of 5 million units of the company's Venice CPU.

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Further underscoring the bullish sentiment, the pricing of AMD's options—known as volatility skew—has inverted. This means upside calls have become relatively more expensive than downside puts, an unusual structure that signals aggressive demand for bullish positions from traders.

Valuation and Hedges Remain in Focus

Despite the prevailing optimism, some market participants are positioning for a potential downturn. A notable block of 4,009 put contracts at the October $500 strike was also observed, representing either a hedge against a large stock position or a direct bet on a decline of roughly 18%.

This cautious positioning comes as AMD's stock has rallied 287% over the past year, pushing its market capitalization toward $1 trillion. The rapid appreciation has absorbed a significant amount of positive news, leading some analysts to flag valuation as a potential risk.