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As the post-election downside pressure on tech stocks seems to be fading, Advanced Micro Devices, Inc. (NASDAQ:AMD) is in a fantastic position to jump higher. As we saw last week with NVIDIA Corporation’s (NASDAQ:NVDA) strong earnings announcement that came on the heels of AMD’s better-than-expected earnings numbers and forward-looking guidance, there is still strong demand for central processing unit (CPU), graphics processing unit (GPU) and accelerated processing unit (APU) technology. With this strong performance in the industry, we expect to see AMD’s stock price climb back up past the company’s own post-earnings highs of $7.50 as it moves back toward its August high, around $8.

AMD is also an interesting bullish play because the company is a potential acquisition target. We just saw Samsung make an $8 billion bid for Harman International Industries Inc (NYSE:HAR), and with interest rates on the rise, potential acquirers may be forced to act quickly before debt becomes too expensive. AMD — because of its lucrative technology and patents — could be an attractive acquisition for Samsung, for Microsoft Corporation (NASDAQ:MSFT) or even for Intel Corporation (NASDAQ:INTC).

‘Buy to open’ the AMD January (2017) 8 Calls (AMD170120C00008000) for a maximum price of $0.45.

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