AMD Earnings to Be Revealed: Traders Bet on 10% Weekly Stock Volatility

According to Investopedia, AMD (Advanced Micro Devices) (AMD-US) will release its financial results after the U.S. market close on Tuesday (4th). Options market data suggests traders anticipate substantial volatility in the semiconductor giant’s share price following the earnings announcement.

Based on the latest options pricing, AMD’s stock could fluctuate by approximately 10% over the coming week.

Calculated from Friday’s closing price, a 10% increase would push shares toward $527, while a 10% decline could bring the stock below $430, erasing some of its year-to-date gains.

If AMD delivers strong financial results, it may reignite investor enthusiasm for the stock.

AMD’s share price has more than doubled this year, driven primarily by robust revenue growth in its data center business. However, as AI-related stocks have recently pulled back broadly, AMD’s stock has declined nearly 19% from its June peak.

Wall Street remains bullish.

UBS and Bank of America have recently raised their price targets for AMD from $700 to $730 and from $560 to $620, respectively.

These upgrades followed AMD’s ‘Advancing AI’ event, where the company unveiled several new products.

A William Blair analyst commented after the event: 'AMD has now shifted from defense to offense, aggressively pursuing market share. With a strong product roadmap and emphasis on open standards, the company has secured major commitment orders from hyperscale cloud providers and AI labs.'

According to Visible Alpha statistics, the market expects AMD’s Q2 revenue to reach $11.34 billion, representing about 48% year-over-year growth. Adjusted earnings per share (EPS) are projected at $1.61, more than triple the $0.48 reported in the same period last year.

Among the nine analysts tracked by Visible Alpha, seven rate AMD as 'Buy,' two as 'Hold,' and none as 'Sell.' The average price target stands at $582, implying over 20% upside potential compared to Friday’s closing price.