AMD reports second-quarter earnings Tuesday after the bell, with options traders pricing a 7.3% share-price swing even as its technical indicators point to a short bias. The report follows a stretch in which 45 tech hardware and semiconductor companies mostly beat estimates yet still sold off, while AMD arrives fresh off new AI chip deals with Microsoft and Anthropic.
Shares were up 5.47% to $511.17 ahead of AMD's second-quarter report, due Tuesday after the bell. Options traders are pricing in downside anyway: the market implies a 7.3% move, above the 6.4% median swing over the past eight quarters.
Options market prices a bigger-than-usual swing
Historically, AMD shares have moved by an average of about 16.5%, higher or lower, in the month following an earnings report. The stock surged 18% after its last report but fell 18% following the one before that. Its technical picture has also deteriorated, with momentum and trend indicators — including Stochastics, Ichimoku, MACD, Williams %R and key moving averages — pointing to a short bias.
A sector pattern of good numbers, bad reactions
AMD's report lands amid a broader pattern. Since July 1, 45 tech hardware and semiconductor companies have reported earnings, with 38 beating revenue estimates and 36 beating on the bottom line, yet the group has still fallen an average of 13.4% over the past month, with 36 of the 45 trading lower. By comparison, the S&P 500 has stayed flat while the Nasdaq-100 has pulled back roughly 5%, as capital rotates out of tech hardware into defensive sectors such as healthcare, financials and industrials.
AI chip deals raise the stakes
The test comes as AMD builds on new AI momentum. The company unveiled its next-generation Instinct MI450 Series GPUs and sixth-generation EPYC Venice CPUs last week, aimed at its new Helios rack-scale AI systems. Microsoft will deploy Helios across Azure AI services beginning in the second half of 2026, and Anthropic plans to deploy up to two gigawatts of Instinct MI450 GPUs in its own Helios system starting in the first half of 2027 — a deal that could be worth tens of billions of dollars over time. AMD also committed to invest up to $5 billion in Anthropic as part of the agreement.
Yahoo Finance highlighted AMD's underlying numbers: revenue growth accelerated from 8.9% in the quarter ended June 30, 2024, to 37.8% in the quarter ended March 31, 2026, and net income growth has topped 100% in five of the past eight quarters. According to Yahoo Finance, Citi analyst Atif Malik said: "We are buyers of AMD into earnings report on August 4."
Sources: CNBC, Yahoo Finance
Trading involves risk.
Risk Disclaimer
