Key Takeaways
- AMD shares dropped 8% on heavy volume (131.6M vs. avg. ~70M) following Q2 earnings.
- Q2 results impacted by $800M in inventory charges from U.S. export restrictions on MI308 AI chips to China.
- Analysts remain bullish with multiple price target increases despite the earnings miss, citing MI350 series ramp-up and Oracle partnership.
Key Drivers of the AMD Stock Move
AMD reported mixed Q2 results with revenue beating estimates at $7.69B (vs. $7.41B expected) but EPS missing at $0.48 (vs. $0.49 expected). The company revealed that U.S. government export controls on its MI308 AI chips led to $800M in inventory and related charges, reducing Q2 EPS by approximately $0.43.
AMD Insider Trading
AMD’s Chief Technology Officer Mark Papermaster sold 17,998 shares worth approximately $2.79M on July 15, retaining 1.72M shares. This appears to be part of regular insider selling activity rather than a signal of concern.
AMD Unusual Options
Significant protective positioning emerged with investors placing over $2.6M in January 2026 $150 puts on August 6 as shares declined. Additional large put positions were established with $1.6M in June 2027 $125 puts and $1.5M in June 2026 $150 puts on August 5.
AMD Seasonality
Based on data since January 2020, August has historically been a neutral month for AMD with 50% positive periods and an average change of -0.1% across six samples. This contrasts with July’s strong performance (83% positive, +16.3% average).
Analyst Focus
Analysts remain largely bullish on AMD despite the earnings miss. Recent upgrades include Susquehanna maintaining “buy” with a price target increase from $135 to $210, and Morgan Stanley maintaining “hold” while raising its target from $121 to $185. Multiple firms, including Raymond James, Stifel, Benchmark, Barclays, and Wedbush, raised price targets to the $190-$210 range following earnings.
How to Track AMD Live
AMD’s AI ambitions face near-term headwinds, but analysts see long-term potential as MI350 series production ramps up.
- Track AMD’s key support level at the $157-$158 range, which was tested during Wednesday’s session
- Monitor AMD’s unusual options activity for institutional sentiment shifts
- Follow AMD’s insider transactions for potential signals from executives
Market Update Into September 7th: Inflation Data Incoming