Advanced Micro Devices (AMD) is gearing up to release its second-quarter financial results after the market closes on Tuesday, and traders are bracing for significant stock volatility. Current option pricing indicates that the stock is expected to move over 7% by week’s end, which suggests potential pricing ranges of over $190 or down to around $163. Thus far in 2025, AMD shares have surged more than 45%, showcasing the chipmaker’s strong performance this year.
Following the company’s first-quarter report, AMD shares climbed nearly 2%. However, in contrast, the stock experienced declines of 6% and 10% in the wake of its previous two quarterly reports. In May, AMD exceeded estimates and projected a revenue forecast that surpassed analysts’ expectations, hinting at the company’s growth potential.
While analysts anticipate an increase in sales, there are concerns regarding falling profits due to potential impacts from tighter restrictions on chip exports to China. Despite this, the mood among Wall Street analysts appears cautiously optimistic, particularly since AMD has indicated plans to restart exports of its MI308 chips to China, contingent on receiving authorization from U.S. regulators.
Overall, the anticipation surrounding AMD’s upcoming earnings report reflects both the challenges and opportunities facing the company in a dynamic market. The mixed sentiment from analysts highlights the complexity of the current semiconductor landscape but also underscores a belief in AMD’s future potential.
This situation exemplifies the resilience of tech companies in adapting to regulatory changes while continuing to expand their market reach.