Advanced Micro Devices (NYSE:AMD) releases its latest earnings on Tuesday after the US market closes.
AMD – Weekly Chart
The price of AMD has been on a downtrend and is now testing some key support levels around the $114-122 range. The price looks weak but a strong earnings release could set a price bottom.
The latest earnings release will come after chip stocks have struggled with the release of the DeepSeek app. Market heavyweights like Nvidia and SMCI were lower on Monday as investors cut back on their bullish bets for AI market trends.
Nvidia was hit by news that its CEO Jensen Huang was selling $14 million of stock on a daily basis. This was a pre-planned share sale plan but it raises questions about why a CEO would sell anything.
Nvidia’s stock crash sent the price back to its 200-day moving average and that is a key level for the next path. It also adds to investor fears and retail interest could dry up on chip names in the near-term.
AMD is expected to post revenue of $7.54 billion, up 22% year-over-year, and earnings of $1.1 billion, up from $667 million a year earlier.
Analysts have brushed off the DeepSeek release and said that AI spending will continue. That may be a hopeful assumption but companies have committed hundreds of billions to data centers and even had plans for nuclear energy investments to power them. It is not easy to accept defeat and walk away.
“Spending for AI continues unabated,” Citi analysts said, after Meta’s earnings showed a plan to invest $60 billion to $65 billion in capital expenditures this year. That would be “good news” for AMD, analysts said.
The company will have a lot to prove in this earnings release as the market dynamic has changed. AMD will have to produce something strong to set a potential price low at the current support levels.
