2 More Chip Stocks Making Major Intraday Moves

A new partnership between Nvidia and Intel for chip co-development drove Intel shares higher and ended Nvidia's losing streak, creating divergent impacts across the semiconductor sector. Micron Technology (MU) surged 5.8% to a record $170.45, extending a 12-day win streak on a bull note and pre-earnings optimism, with significant bullish options activity. Meanwhile, Advanced Micro Devices (AMD) fell 1.4%, extending its recent decline, highlighting varied investor responses to industry developments.

Analysis

The semiconductor sector is experiencing significant divergence following Nvidia's (NVDA) announcement of a chip co-development partnership with Intel (INTC). This strategic alliance has acted as a positive catalyst for both companies, halting a three-day loss for Nvidia and pushing Intel's stock toward a record daily gain. In contrast, the reaction among sector peers is split. Micron Technology (MU) is exhibiting exceptional strength, with its stock rising 5.8% to $169.33 after hitting a record high of $170.45, marking a potential 12-day winning streak. This momentum, which contributes to a 101% surge in 2025, is fueled by a recent bull note and building optimism ahead of its earnings report next week. Bullish sentiment is further confirmed by heavy options activity, with call volume at 249,000 against 189,000 puts, double the expected daily volume, and notable interest in new positions for the September 170 call. Conversely, Advanced Micro Devices (AMD) is underperforming, falling 1.4% to $156.98 and extending its own three-day losing streak as it pulls back from recent highs. The stock's key technical support level is its 80-day moving average. Notably, AMD's recent 10-day call/put volume ratio of 2.51 indicates a crowded bullish sentiment, which could unwind and exacerbate downside pressure if the stock continues to weaken.

Key Decisions for Investors

• Given Micron's (MU) powerful rally and extreme bullishness in the options market ahead of earnings, investors should be aware that high expectations are already priced in, posing a significant risk of a 'sell the news' reaction if the report does not exceed these elevated forecasts.
• For AMD, the combination of negative price momentum and a high call/put ratio suggests a vulnerability to a sentiment reversal; traders should monitor the 80-day moving average as a critical support level, as a breach could trigger further selling from unwinding bullish positions.
• The market's bifurcated reaction to the NVDA-INTC deal underscores a shift in competitive dynamics, meaning investors should employ a stock-specific selection strategy within the semiconductor industry rather than relying on broad sector-based investments.