Congressman Dan Newhouse recently made headlines for a well-timed investment in AMD, the popular chipmaker. On August 17, 2025, he bought shares of AMD for the first time. Just over two months later, on October 27, the U.S. Department of Energy announced a massive $1 billion deal with AMD to build two supercomputers. That news sent AMD’s stock soaring—up about 45% since Newhouse’s buy.

Newhouse is a member of the House Appropriations Subcommittee on Energy, which oversees funding for the Department of Energy. His position and the timing of his trade have raised questions among investors and analysts. While no official claims have been made, some traders are watching closely for any potential concerns around insider trading.

AMD’s stock was trading around $140 when Newhouse made his purchase. By the end of October, after the government deal was made public, shares jumped to about $203. That’s a significant gain in just a couple of months. Trading activity also spiked, with 80 million shares traded on the day of the announcement—well above the daily average of 50 million. This kind of volume and price movement creates opportunities for day traders and swing traders looking to profit from volatility.

This news isn’t just important for stock traders—it also matters to crypto investors. AMD’s supercomputers are expected to boost artificial intelligence (AI) research and performance. Since AI is closely connected to some blockchain projects, coins like Render (RNDR) and Bittensor (TAO) often follow trends in tech stocks like AMD. On October 27, when AMD rose 8% in one day, RNDR also gained 5%, showing how tightly these markets are linked.

Ethereum (ETH), a key platform for AI-based smart contracts, also saw a slight increase on the same day, moving up by 2% to $2,600. For crypto traders, this shows how moves in the tech sector can ripple into digital assets. Traders may look for arbitrage plays between AMD options and AI token futures during periods of high momentum.

Technical indicators support this bullish trend. AMD’s Relative Strength Index (RSI) sits at 65, suggesting it’s close to being overbought but still has room to grow if more details about the partnership emerge. On-chain data for TAO also shows rising interest—more than 1,000 new wallets were created after the announcement. However, if AMD’s stock pulls back or if regulators begin investigating Newhouse’s trade, related crypto tokens could take a hit too.

Beyond short-term gains, this story points to growing government investment in advanced computing and energy research. The $1 billion AMD deal could lead to more efficient crypto mining operations. AMD chips are already used in many Bitcoin mining machines, so improvements in their performance could help increase Bitcoin’s network power. As of late October 2025, Bitcoin is trading at around $70,000 with a 3% weekly gain—some of which could be tied to this tech news.

For longer-term investors, this may be a chance to build a mixed portfolio that includes AMD call options and Ethereum perpetual swaps. Traders should keep an eye on upcoming tech conferences and announcements that could drive more price action in both sectors. Interest rates and other macroeconomic factors will also play a role in future movements.

For those trading both stocks and crypto, this AMD development could be an important signal. Swing traders might aim for AMD’s next price target around $220, especially after positive analyst updates. In the crypto world, dips in AI tokens like Fetch.ai (FET), currently priced near $1.20, could be good buying opportunities since they’ve shown a 10% price link to AMD over the last few months.

Search interest also supports the hype—Google Trends showed a 30% jump in searches for “AMD supercomputer” on October 27. Still, it’s smart to stay cautious. Any investigation into Newhouse’s trade could trigger a pullback in both stocks and crypto. To manage risk, investors might consider pairing assets like AMD and ETH in balanced strategies.

This event shows how politics, technology, and finance are becoming more connected than ever. Whether you’re into stocks, crypto, or both, staying informed about these cross-sector developments can help you make better trading decisions.