Advanced Micro Devices (NASDAQ:AMD) stock is stuck in a bear market as investors dump companies in the artificial intelligence (AI) industry. 06 trillion in October.
Will its upcoming earnings help turn the tide? Advanced Micro Devices to Publish Earnings Amid Circular Investing Concerns AMD will publish its financial results as investors remain concerned about several factors.
One of these challenges is the circular nature of its investments. The most recent one was its participation in Meta Platforms (NASDAQ:META) financing.
It is investing $1 billion in the company, with Meta expected to use some of the proceeds to buy AMD’s CPUs, GPUs, and networking systems. AMD has also invested in Anthropic, the biggest AI lab in the world.
It committed to investing $5 billion in Anthropic. Read Also: NIO Stock Under Fire: Slowing October Deliveries Pile On the Pressure AMD stock has also slumped as investors have dumped companies in the GPU industry.
Last week, Intel (NASDAQ:INTC) had its worst daily performance ever after its earnings report disappointed. It is against this backdrop that AMD will publish its quarterly earnings report.
Benzinga data shows that analysts expect AMD’s September quarter revenue to jump 41% to $13 billion. 20 in the same quarter last year.
Most of this growth will be driven by its AI business, including GPUs and CPUs. AMD Stock is at Risk of Falling After Earnings Recent history shows that most AI companies have fallen after releasing their earnings, including Intel, Micron, and SanDisk.
The options market points to an AMD stock retreat after its earnings. 03, a sign that it has more puts than calls.
Most of the puts are at $490, about 3% below the current level. AMD stock chart | Source: TradingView On the charts, AMD has been in a slow downward trend in the past few weeks, moving from a high of $660 in October to the current $504.
6% Fibonacci Retracement level. It has slumped below the 50-day moving average, while the Supertrend indicator has turned red.
