A Simple Guide to Profiting from AMD’s Q2 Earnings

2025 $Advanced Micro Devices(AMD)$ Q2 Earnings Expectations

1. Key Growth Driver: Data center GPU business.

2. Microsoft’s Contribution: Microsoft has significantly increased capital expenditures, with its purchases accounting for approximately 8% of AMD’s total sales.

3. PC Market: Performing better than expected, alongside continued growth in AMD’s server CPU market share.

4. China Market: The MI308X GPU has been approved for re-export to China, expected to contribute approximately $300 million in Q3 and $500 million in Q4 to net profit.

How to Evaluate the Earnings Outlook

• Positive Report: Strong growth drivers but no major surprises.

• No Significant Bearish Risks: Bullish factors are likely already priced into the stock.

• High Valuation: Current valuation remains elevated.

• Expected Earnings Volatility: ±9%, with a trading range of $155–$187.

Trading Strategy

• No Major Downside Risk: The stock is unlikely to break below the expected range, making sell put strategies attractive.

• Pre-Earnings Play: Sell put options before the earnings announcement and close the position at the market open on the release day.

• Covered Call Strategy: For those holding AMD shares, sell out-of-the-money calls to generate additional income.

Strike Price and Expiration Suggestions

1. Covered Call Writing Strategy:

   • $AMD 20250808 192.5 CALL (85% win rate).

2. Put Selling Strategy:

   • $AMD 20250808 155.0 PUT (81% win rate).