AMD Investors Load Up on Bullish Options as Quarterly Earnings, Revenue Outlook Beat Estimates

Shares climbed 5% Wednesday after the company forecast revenue could reach $6.7 billion, plus or minus $300 million for the third quarter, according to its press release released late Tuesday. That midpoint is higher than the $6.6 billion average of analyst estimates compiled by Bloomberg.

For the second quarter ended June 30, adjusted earnings rose 19% to 69 cents, beating the 68-cent average of analyst estimates compiled by Bloomberg. Revenue rose to $5.8 billion, better than the $5.7 billion expected by analysts. The results were buoyed by a 115% jump in the data center revenue amid climbing demand for chips used in artificial intelligence applications.

Across AMD options with expiration dates that stretches from Friday through Dec. 18, 2026, the biggest open interest are in call options that give the holders the right to buy the stock at $200.

AMD raised its outlook for data center graphic processing units revenue to more than $4.5 billion from the $4 billion it forecast in April.

"We continued accelerating our AI traction as leading cloud and enterprise providers expanded availability of Instinct MI300X solutions, and we also saw positive demand signals for general purpose compute in both our client and server processor businesses," AMD Chief Executive Officer Lisa Su said during the company's earnings call with analysts on Wednesday.

The stock rebounded from the lowest since January as the outlook gave investors the confidence that the company is growing into its high multiples. While the stock is currently trading at 163 times earnings, that multiple is expected to decline to 42 times earnings by the end of the year, as profit expands.

Technical indicators tracked by moomoo are flashing positive signals, with eight of the 15 gauges showing that the stock is oversold and the trend could be turning bullish.

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