Advanced Micro Devices (AMD) shares have pulled back rather significantly in recent weeks, but options traders believe the chipmaker’s earnings on Nov. 3 are unlikely to offer much relief.
Consensus is for the AI chip specialist to record $1.68 a share of earnings (EPS) for its fiscal Q3, which would represent a whopping 73% increase on a year-over-year basis.
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Despite recent weakness, AMD stock remains a blockbuster investment for 2026, currently trading at more than 2x its price at the start of this year.
www.barchart.comOptions Sentiment Remains Bullish for AMD Stock
While a 73% YoY growth is solid by any stretch of the imagination, the derivatives market believes much of the earnings upside is already baked into AMD shares at their current price.
According to Barchart’s data, the put-to-call ratio on options contracts expiring Nov. 6 is set at 1.04 as of this writing, and a reading above 1.00 is often characterized as in favor of the bears.
And the lower price on those contracts sits at $454 currently, indicating potential for a nearly 9% post-earnings decline in Advanced Micro Devices.
That said, the chipmaker has a history of gaining over 10% on average in November – a seasonal pattern that makes it attractive heading into the earnings event.
Susquehanna Raises Price Target on AMD Shares
Susquehanna’s senior analyst Christopher Rolland disagrees with the options market sentiment on AMD stock.
In his latest research note, Rolland maintained the Nasdaq-listed firm at “Buy” – and raised his price target to $650, signaling potential upside of more than 30% from current levels.
According to him, continued data-center strength will help Advanced Micro Devices report a better than expected Q3 and offer upbeat guidance, which would drive its share price higher through the remainder of 2026.
AMD still has billions in pending authorization for buybacks, which makes it even more attractive as a long-term holding, the analyst concluded.
How Wall Street Recommends Playing AMD
Note that Susquehanna is not the only Wall Street firm keeping bullish heading into AMD earnings.
The consensus rating on Advanced Micro Devices sits at “Strong Buy,” with the mean price target of about $656 indicating massive upside potential from here.
www.barchart.com On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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