AMD reports third-quarter results after the close today, following a slide triggered by weak earnings at other tech companies. A CNBC Pro contributor is selling a neutral options spread around the report, while data center revenue sits at the center of the earnings story.
AMD fell 10.9% on Friday and slid another 7.5% on Monday, caught in the fallout from Intel and the broader tech sector. Now the chipmaker's own numbers get a vote.
Intel guided fourth-quarter revenue well below consensus, and its stock dropped 29% on Friday, its worst day since the 1970s. A record drop in Alphabet and weak results from Amazon came first.
What Wall Street expects
AMD's report lands after the close with the call at 5 p.m. ET. Analysts are looking for $1.89 in earnings per share on $13.1 billion in revenue, according to Crypto Briefing.
In AMD's most recent quarter, data center made up 58% of total revenue, up from 42% a year earlier. Management has forecast Q3 data center revenue above $8 billion, against $6.718 billion in Q2.
Past reactions may make direction hard to call
The stock's response to earnings has been mixed. CNBC's analysis shows it fell 17% after Q4 2025 results, rose 18.6% after Q1 2026 and fell 7% after Q2 2026, even when guidance came in above consensus.
A trade that doesn't pick a side
Options let investors avoid calling direction. CNBC Pro contributor Julia Spina is selling the November 4 425/415 put spread and the 510/520 call spread for a credit of roughly $3.65, based on Monday's close.
AMD's 30-day implied volatility closed Monday higher than on about 81% of days over the past year, which means sellers collect richer premium than usual. The contracts imply a move of about 9% through Wednesday, near AMD's 8.4% average close-to-close move over its last 10 reports.
The trade reaches its maximum profit of $365 if AMD closes between $425 and $510 on Wednesday. The maximum loss of $635 comes if it closes below $415 or above $520, which has happened in 11 of its last 40 reports.
Sources: CNBC, Crypto Briefing
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