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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.