AMD Q3 Earnings: Stock Against the Ropes as Tech Stocks Plummet
Oct 26, 2023
Advanced Micro Devices, Inc. (AMD) is set to report fiscal third-quarter earnings on Tuesday, Oct. 31 after the market closes.
Analysts expect earnings per share (EPS) to cross the wires at $0.68 adjusted and $0.28 on a GAAP basis. Revenue is seen at $5.71 billion, with an operating profit of $1.27 billion. AMD beat EPS estimates in eight out of the last eight quarters, and revenue estimates in seven of the last eight quarters.
AMD is down over 8% in October following declines in September and August. That compares to a 3.6% drop in the Nasdaq 100 (/NQ) this month. Much of AMD’s weakness this month has come over just the past several days amid a broader selloff in equities.
Earlier this week, Reuters reported that AMD is planning to produce chips using technology from Arm Holdings. (ARM), citing two sources familiar with the development. However, that hasn’t had any noticeable impact on the stock price. For now, it appears AMD is at the whims of broader risk sentiment.
Bad news for the sector started earlier this week when Texas Instruments (TXN) reported earnings and issued some gloomy guidance. AMD may also guide earnings lower, which would be a big negative for the stock price. Overall, the numbers and guidance will have to impress to keep the stock price afloat amid a broader tech selloff.
As of Thursday, AMD was trading with an implied volatility rank (IVR) of 68.3. The Nov, 3 expiration is the nearest post-earnings expiry and offers some chunky premium, giving traders who are looking to sell premium some juicy choices.
AMD recently broke below its 200-day simple moving average (SMA) to trade at a trendline in place from February. While the break below the SMA already put the stock in a disadvantaged position, a break below the trendline could crucify prices and send the stock lower.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.