Connect with us

Crypto World

AMD Stock Set for Major Price Swing Following Earnings Release

Published

on

21Shares Introduces JitoSOL ETP to Offer Staking Rewards via Solana

TLDR

  • Traders expect AMD stock to experience a significant price move of 7-8% following its earnings report.
  • Analysts predict AMD will report record revenue of $9.69 billion for the fourth quarter.
  • The stock has seen a slight decline of 2% ahead of the earnings release, but analysts remain confident.
  • The implied volatility in options suggests a potential price swing of $17.38 after earnings.
  • AMD’s data center segment is expected to drive growth, with strong demand for AI infrastructure.

Traders are anticipating a significant move in Advanced Micro Devices (AMD) stock after its earnings report. The company is scheduled to release its results after the closing bell on Tuesday, and options pricing suggests a potential swing of 7% to 8% in either direction. The implied move could bring the stock back to its October highs near $265 or push it down to around $228.

Market Expectations for AMD Stock

Ahead of the earnings report, traders are positioning themselves for a sizable price movement in AMD stock. The implied volatility in options suggests that the stock could fluctuate by $17.38, or around 7.2%, post-earnings. For comparison, the median stock movement after earnings for the last eight quarters has been about 5.3%. The heightened activity indicates that market participants are bracing for volatility as AMD reports its financial results.

Analysts are projecting AMD’s earnings for the fourth quarter to reach $1.34 per share. This marks a nearly 27% year-over-year increase in revenue, bringing the total to an estimated $9.69 billion. The growth is largely driven by strong demand for AMD’s data center products, including chips for artificial intelligence infrastructure, a segment that continues to see increased investment from tech giants.

What’s at Stake for AMD’s Earnings Report

AMD’s financial health is solid, with key metrics such as a 48.26% gross margin and a net margin of 10.32%. These figures reflect the company’s effective cost management and profitability. Despite the strong fundamentals, AMD faces sector-specific risks due to the cyclical nature of the semiconductor industry. As a result, there is some uncertainty surrounding the stock’s movement post-earnings.

In the days leading up to the earnings report, the stock has seen a slight dip of 2%. However, analysts remain bullish, with a mean price target of $276, implying roughly 12% upside from the current level. As of now, 70% of analysts have issued buy recommendations for the stock, further indicating confidence in AMD’s growth prospects.

Advertisement

Options trading for AMD shows a preference for calls over puts, with a ratio of 7:5. This suggests that traders are leaning towards a bullish outcome for the stock. The activity comes as AMD prepares to report what analysts expect to be a record $9.67 billion in revenue for Q4. In the same period last year, the company posted $9.25 billion in revenue, highlighting its strong growth trajectory.

The upcoming earnings report will be crucial for AMD’s future stock performance. Traders are closely monitoring the potential for a large move in either direction based on the company’s results. With $17.11 being the implied move in either direction, the coming days could prove pivotal for AMD stock.

Source link

Advertisement
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto World

Pumpfun Unveils Investment Arm and $3 Million Hackathon

Published

on

Pumpfun Unveils Investment Arm and $3 Million Hackathon


PUMP rallied as much as 10% but erased its gains as crypto markets dipped.

Source link

Continue Reading

Crypto World

Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

Published

on

Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

Assets in spot Bitcoin (BTC) ETFs slipped below $100 billion on Tuesday following a fresh $272 million in outflows.

According to data from SoSoValue, the move marked the first time spot Bitcoin ETF assets under management have fallen below that level since April 2025, after peaking at about $168 billion in October

The drop came amid a broader crypto market sell-off, with Bitcoin sliding below $74,000 on Tuesday. The global cryptocurrency market capitalization fell from $3.11 trillion to $2.64 trillion over the past week, according to CoinGecko.

Altcoin funds secure modest inflows

The latest outflows from spot Bitcoin ETFs followed a brief rebound in flows on Monday, when the products attracted $562 million in net inflows.

Advertisement

Still, Bitcoin funds resumed losses on Tuesday, pushing year-to-date outflows to almost $1.3 billion, coming in line with ongoing market volatility.

Spot Bitcoin ETF flows since Jan. 26, 2026. Source: SoSoValue

By contrast, ETFs tracking altcoins such as Ether (ETH), XRP (XRP) and Solana (SOL) recorded modest inflows of $14 million, $19.6 million and $1.2 million, respectively.

Is institutional adoption moving beyond ETFs?

The ongoing sell-off in Bitcoin ETFs comes as BTC trades below the ETF creation cost basis of $84,000, suggesting new ETF shares are being issued at a loss and placing pressure on fund flows.

Market observers say that the slump is unlikely to trigger further mass sell-offs in ETFs.

“My guess is vast majority of assets in spot BTC ETFs stay put regardless,” ETF analyst Nate Geraci wrote on X on Monday.

Advertisement
Source: Nate Geraci

Thomas Restout, CEO of institutional liquidity provider B2C2, echoed the sentiment, noting that institutional ETF investors are generally resilient. Still, he hinted that a shift toward onchain trading may be underway.

Related: VistaShares launches Treasury ETF with options-based Bitcoin exposure

“The benefit of institutions coming in and buying ETFs is they’re far more resilient. They will sit on their views and positions for longer,” Restout said in a Rulematch Spot On podcast on Monday.

“I think the next level of transformation is institutions actually trading crypto, rather than just using securitized ETFs. We’re expecting the next wave of institutions to be the ones trading the underlying assets directly,” he noted.