AMD’s Record High Shows AI-Fueled Chip Rally Has Another Gear

Advanced Micro Devices Inc. is on track for its best week since November, outpacing even AI-darling Nvidia Corp., as optimism builds anew around the semiconductor industry’s growth prospects.

AMD shares closed at a record high on Thursday and rose again in early trading Friday. They’re up roughly 65% since October, handily beating both Nvidia and the Philadelphia Semiconductor Index in that period. AMD has surged roughly 12% this week, outpacing a nearly 6% leap for Nvidia, which is also climbing Friday and set an all-time high Thursday.

Investors see huge growth potential for chips and expect that Nvidia ...