AMD Investors Load Up on Bullish Options as Quarterly Earnings, Revenue Outlook Beat Estimates
$Advanced Micro Devices(AMD.US$ investors are spending millions of dollars on bullish options after the company's second quarter earnings and guidance beat analyst estimates.
The biggest of those unusual trades tracked by moomoo involved call optionsthat give the holder the right to buy 100,000 AMD shares at $180 each by June 2025. The trade, posted at 11:54 a.m. Wednesday, showed the buyer paid a premium of $1.67 million for the 1,000 call options, each covering 100 shares, according to data compiled by moomoo.
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.
Share your thoughts on AMD in the comments section below.
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Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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Moomoo Senior News and Community Manager
Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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73890554 : Oversold these earnings should help stock up to previous levels
Abdelhakim B : Thanks