Public trading strategy
AI giants are hoarding processors — ride AMD and ARM as demand stays red-hot
Thesis
The AI revolution requires massive computing power, and that means CPUs from companies like AMD and ARM. When hyperscalers like Amazon, Google, and Microsoft place big orders, it creates a visible demand pipeline. UBS analysts tracking this trend see more upside ahead — and they have visibility into the order books.
Strategy approach
Build a trend-following strategy for AMD that enters long when price closes above the 20-day high and the 10-day moving average is above the 50-day moving average. Exit when price closes below the 10-day moving average for 3 consecutive days. Position size at 3% of portfolio.