Advanced Micro Devices (AMD) should publish results in the first quarter after the closing bell. Merchants expect a modest post-benefit move, which has dropped so far this year.
The prices of the options suggest that traders position themselves so that AMD shares move almost 8% in the days that followed the report. A leap to 8% of the Monday closing price would take action at around $ 108.50, its highest price since the end of March, and a drop of 8% would put it around $ 92.50, erasing all the gains in last week’s action.
A movement of this magnitude – in one or the other direction – would be roughly in line with the average post -benchmarks of AMD in the last four quarters, which amounts to 7.5%. The stock dropped by more than 6% the day after its income from the fourth quarter data center, which increased by 69% compared to the previous year, failed expectations in February. The shares dropped more than 10% on the disappointing report of AMD profits in October.
Analysts expect the DMA to publish a turnover in the first quarter data center increased by 55% to 3.6 billion dollars, which leads to total 30% sales growth. The adjusted profits should jump from more than 50% in annual sliding to 1.55 billion dollars, or 94 cents per share.
Analysts are divided on the prospects for AMD and its actions before Tuesday’s income. Half of the 12 analysts followed by the Alpha Visible AMD Purchase rate in Buy, while five attribute a “preserved” note to it and a recommends selling. The consensual price target is $ 123.50, which implies a 23% return on Monday’s fence.
Last month, the Trump administration tightened the restrictions on semiconductor exports to China, a decision that analysts from Bank of America called an “effective delivery prohibition” on the AMD MI308 chip and the H20 H20 of NVIDIA (NVDA). AMD later warned that it could be self with costs of up to $ 800 million if they could not guarantee export licenses. Analysts expect new restrictions to weigh heavily on the sales of AMD, Nvidia and other flea sales in China.
Meanwhile, a massive IA infrastructure investment should be a rear wind for the AMD because it sails from an uncertain economic perspective. The demand for AI remains robust, according to the main cloud service providers such as Microsoft (MSFT), Alphabet (Goog) and Amazon (AMZN), which are all for investing hundreds of billions of dollars in technology this year.
AMD shares have lost around 36% of their value in the last 12 months and have been down around 17% since the start of the year.
