If you have been watching the tech sector or considering a position in Advanced Micro Devices, there has been plenty to discuss lately. AMD’s stock has rallied about 9.0% over the last month and a strong 36.5% year-to-date. That comes on the heels of an August-September dip, which now looks more like a pause than a trend reversal. Still, over the past year, shares are off by 3.7%, a reminder that volatility is par for the course for chipmakers navigating both AI hype cycles and competitive threats.

The latest news cycle has been electric. AMD’s headline-grabbing deal with OpenAI, a multibillion-dollar chip partnership, helped highlight the company’s potential in the AI arms race and might explain some of the recent bounce. There have…