What happened

Shares of Advanced Micro Devices (NASDAQ:AMD) soared in July 2020. The microchip designer saw three distinct jumps last month, adding up to a 47.2% gain overall, according to data from S&P Global Market Intelligence.

So what

First, AMD shares rose 8% as the company introduced a new lineup of desktop processors, built on AMD's "Zen 2" architecture and etched out by a leading-edge 7-nanometer manufacturing process. Next, arch-rival Intel (NASDAQ:INTC) said that its own next-generation manufacturing process is running so late that the chip giant might have to rely on third-party manufacturing experts. That announcement was good for a 17% gain on AMD's stock chart.

Finally, AMD's second-quarter results came in well above analyst expectations to drive the stock another 13% higher in a single day.

A rendering of many arrows pointing up on top of a blue circuit-board pattern.

Image source: Getty Images.

Now what

AMD has seen strong sales of both notebook and server chips due to the ongoing COVID-19 health crisis, and Intel's manufacturing issues gave the company another foot in the door to further market share gains. The stock is setting fresh all-time highs on a regular basis nowadays, having gained 150% over the last 52 weeks.

Even after these massive gains, AMD stock is a buy if you're willing to bet that the company can take full advantage of Intel's rare manufacturing weakness.