AMD Bears Fan Unusual Option Trades Even as Stock Rebounds From Biggest Slump in a Month
$Advanced Micro Devices (AMD.US)$ saw bears snapped up option positions even as the stock rebounds from its biggest decline in over a month.
Eight of the 13 unusual option activities involving AMD were bearish positions, exchange data tracked by moomoo as of noon time in New York showed. More than half of them involved options expiring next week, and another five are zero-days-to-expiration (0DTE) contracts.
The bearish option positions were posted even as the stock rebounded 1.4% Friday after a 4% decline a day earlier. AMD shares are recouping some of the losses on Thursday after the chipmaker's artificial intelligence event missed to impress many analysts.
While the company is taking steps to be a formidable player in the field of AI, the company is unlikely to notably make a "dent" on $NVIDIA (NVDA.US)$'s market share, Bloomberg quoted a CFRA analyst as saying. Analysts from Bloomberg Intelligence, Rosenblatt Securities, and Lynx Equity Strategies cited the lack of announcement of new large customers for the muted investor reaction to the AI event on Thursday, Bloomberg reported.
The downbeat mood reversed Friday as the market turned its attention to the huge addressable market for AI accelerator. AMD Chief Executive Officer Lisa Su said Thursday afternoon that the data center AI accelerator market could grow to $500 billion by 2028.
"With memory advantages in graphics processing units for inference and market-share gains in high-performance AI central processing units, AMD is positioned to grab the No. 2 spot and can grow its GPU share, Kujan Sobhani and Oscar Hernandez Tejada, analysts are Bloomberg Intelligence, wrote in a note Friday.
Although technical sentiment for the stock remains neutral, AMD shares are now trading above many moving averages, a sign to some who study charts, that the trend could be turning bullish.
Share your thoughts on AMD and its rivals including Nvidia in the comment section. And if you have a price forecast, please vote below.
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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