AMD is trending up on strong AI demand and raised price targets, but momentum is slowing.

We're back here on "Morning Trade Live" to focus on the chart for AMD shares, which hit a new record high in today's session. We have increased by more than 215% year-on-year. We are now up 2.6%, or about $648 and some change for AMD stock.

We received some feedback from Lisa Su about the order. We have seen an increase in the target price by Mizuho. Yes, as I mentioned, AMD shares are trending upwards, and this began even before the market opened, even after CEO Lisa Su sent an optimistic message about demand for artificial intelligence, saying that demand for chips will remain very high for years to come.

Lisa Su noted that demand still outpaces supply despite AMD's efforts to increase production, with the company planning significant capacity increases by 2027. These comments come as Wall Street has become more optimistic about this story.

Citi raised its target price from $575 to $800, while Mizuho raised its target from $580 to $705.

Both organizations point to the rapid adoption of AI agents, including Meta's "Muse," as key new drivers of computing demand. Analysts say these proxy AI applications could require significantly more processing power than traditional chatbots, with AMD being a major beneficiary through its CPU business.

The result is a growing perception in the market that the next phase of spending on AI infrastructure could provide another significant boost for AMD. In real-time, the stock is up about 3% here and is approaching the $650 per share level.

It is clear that Mizuho's price reaching $705 is due to the prospects of proxy AI, which is also the reason for the bank's move.

How would you approach a trial trade for AMD stock today? I'm looking at a stock that broke through to reach another new record high here, but I think the upward moves have become less vigorous.

Certainly, there is an upswing in all target prices and everyone is talking positively, but I think the stock probably needs to slow down this upward pace.

Therefore, I will turn to traditional November options to sell a "call" contract out of the current price range (out-of-the-money). To take advantage of today's jump in the stock, which frankly was a little less than what most market optimists had hoped for.

I sell the spreads on traditional call options for November between 750 and 760, and I get about two dollars. Therefore, I like the return on risk of around 25% here, and I give myself an upside margin of more than 100 points, targeting post-earnings levels, and taking advantage of implied volatility and profits.

Yes, I mean, look at Lisa Su's optimistic comments about the extremely high demand. As I mentioned, Mizuho raised the price of AMD to 705,