Traders See 8% Post-Earnings Swing as AMD Powers SpaceX AI Chips
Options traders expect AMD shares to swing up to 8% by week’s end, implying a trading range from $331 to $389 following earnings. Advanced Micro Devices is one of five chipmakers powering SpaceX’s reusable rockets and AI-driven systems ahead of the company’s potential $2 trillion IPO.
1. Earnings Volatility Outlook
Options pricing signals that AMD shares could move as much as 8% in either direction by week’s end, translating to a low near $331 and a high around $389 after Tuesday’s earnings release. This anticipated swing reflects heightened trader expectations following recent record highs driven by accelerating AI hardware demand.
2. Analysts’ Forecasts and Price Targets
Analysts project AMD will report $9.88 billion in quarterly revenue and $1.27 in adjusted earnings per share, each up roughly 33% year-over-year. Following Intel’s strong results, several firms have raised AMD price targets, with one boost to $375, citing continued AI-driven upside.
3. SpaceX AI Chip Partnership
AMD has been identified among five public chipmakers supplying processors for SpaceX’s reusable rockets and onboard AI systems, positioning the company to benefit from SpaceX’s planned rollout. This involvement in critical launch infrastructure could translate into new long-term revenue streams if SpaceX proceeds with its estimated $2 trillion IPO.