WATCH THIS BEFORE AMD REPORTS EARNINGS TODAY!
In a Nutshell
AMD reports earnings today after an 80% run-up to $355, trading at a sky-high PE of 133x despite expected EPS of $1.27 and revenue of $9.85B—fundamentally overvalued with 22% downside to fair value. Bullish AI/semiconductor sentiment may drive short-term gains, but historical post-earnings sell-offs and "buy the rumor, sell the news" risk make it a poor buy at current levels. Avoid leverage, especially for beginners; use risk calculators and wait for a correction in this irrational market.
These notes were generated by AI and may contain inaccuracies.
AMD is reporting earnings today. AMD is currently up nearly 4% to $355 on the day. The key question is not whether AMD will beat earnings, as that expectation is factored in based on its price performance, but whether it remains a good buy after running up 80% from sub-$200 per share over the past 30+ days.
Fundamentally, AMD is not a good deal. PE ratio is 133 times earnings, incredibly high for a semiconductor company. Expected net income: $4.3 billion. Expected revenue: $34.6 billion.
Despite poor fundamentals, you can make money going long on AMD due to incredibly bullish sentiment for semiconductor companies. No break of structure or trend. Rally strength unknown as it's not just AMD: INTC up 300%, SanDisk up over 3,000% (memory-related). Anything semi or AI-related thrives on irrational valuations.
Contrast: Shopify down 12% after beating earnings; PLTR down nearly 7% after best earnings.
Beating earnings alone won't drive AMD higher. Expectations are so high it could be 'buy the rumor, sell the news.' Not worth the risk after 80% run-up from $200. Question is not if you can make money, but if it's a good deal with favorable risk-reward.
Use the risk calculator (second link in description: risk strategy) to plan trades, understand risk ratio, potential profit, and loss.
In a greed-driven market with irrational, unsustainable valuations pumping 10% daily, anything can happen. Fundamentally, AMD is not a good deal, but earnings will provide more insight.
Market expectations (via Investing Pro): EPS $1.27 per share; revenue $9.85 billion. Must beat or risk crash, though expected to beat. AMD notorious for selling off post-earnings historically, but current Wall Street favor and sentiment shift could lead to green close.
Would not invest or buy more at elevated levels—not worth the risk. Acknowledges it can go up but chooses not to partake.
Fair value analysts show 22% downside potential. Excited for irrational valuations to correct in INTC, SanDisk, AMD—none belong at elevated levels. Exponential growth in short time means rubber band will snap; avoid overleverage at overbought levels.
Invest in any speculative asset desired, but:
- Don't use leverage, especially at elevated levels.
- Trading earnings is not ideal for beginners—highly risky.
Other companies reporting after bell: Super Micro, Tempest AI, AMC, Micro Strategy.
For live stream of earnings: drop thumbs up, subscribe, get video to 1,000 likes. Also join live trading session (second link in description) every morning. End the year on a green note.
Keep Ricky Gutierrez in your library
Save the videos and channels worth coming back to, and find them again in one place.
