One of the top-performing chipmaker stocks could be ready to break even higher, according to TradingAnalysis.com founder Todd Gordon.
Gordon now believes the stock could breach another major milestone.
"We're about to break up to $100 a share and above," he told CNBC's "Trading Nation" on Thursday. "Current estimates for the year are for AMD to make $1.23 a share. Next year they're expected to make $1.83, so pretty good growth there. AMD and Nvidia are starting to really pick up market share from a flailing Intel. Intel did $78 billion in sales in the trailing 12 months, while AMD did $9 billion and Nvidia did $15 billion, so there's a long way to go in terms of grabbing market share."
AMD is expected to post 40% sales growth for fiscal year 2021 ending December and another 26% for fiscal 2022, according to FactSet estimates.
The charts also suggest another breakout, he said.
"Clearly just an unbelievable move up here. We've broken past old highs that go back decades," said Gordon. "Here we are now in consolidation … I think this consolidation is pretty healthy, just sort of a near-term pause in the ongoing uptrend. I do think once we break resistance, we are on the way through the $90s into the century mark above $100."
AMD would need to rally nearly 7% to move to at least $100. To make a play on that move, Gordon is buying the 95 calls with Jan. 15 expiration and selling the 100 calls, a $5 call spread costing roughly $1.70. Gordon planned that trade to expire before the company next reports earnings, around Feb. 2.
Disclosure: Gordon holds shares in Advanced Micro Devices.