AMD Stock Trades Down As Anticipation Builds For Nvidia Earnings

Advanced Micro Devices, or AMD, shares are down more than 3% on Monday. The stock is volatile amid broader tech sector weakness.

Advanced Micro Devices, Inc. AMD is trading down by more than 3% to $150 per share on Monday, likely due to weakness in the broader tech sector and anticipation of NVIDIA Corp’s second-quarter earnings report, set for release after Wednesday’s market close.

Nvidia’s upcoming earnings report is highly anticipated, with analysts forecasting a strong performance. Expected earnings are 64 cents per share on revenue of $28.68 billion, significantly up from the previous year. Nvidia’s stock, up roughly 160% year-to-date, could see further gains if results exceed expectations and positive outlooks for AI accelerators are given.

Why This Matters For AMD: Nvidia is a direct competitor to AMD in several markets, particularly in GPUs and AI accelerators. If Nvidia reports exceptionally strong earnings and provides positive guidance, it could signal that Nvidia is gaining more market share in these crucial areas. This could raise concerns that AMD may struggle to compete, potentially leading investors to sell AMD stock.

Read Also: Nvidia Tech Fuels Chinese AI Growth Overseas, Alibaba Ramps Up $7B Investment

Nvidia’s results could likely set the tone for the entire semiconductor sector. If Nvidia significantly outperforms expectations, it might raise the bar for other companies like AMD. Investors could become concerned that AMD might not meet these heightened expectations.

Nvidia is also widely seen as a leader in AI hardware, particularly with its GPUs being critical for AI workloads. If Nvidia demonstrates strong growth and dominance in this area, it could overshadow AMD’s efforts in AI, further pressuring AMD’s stock.

Investors can gain exposure to AMD and Nvidia by investing in the Invesco QQQ Trust, Series 1 QQQ and the SPDR S&P 500 ETF Trust SPY.

How To Buy AMD Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Advanced Micro Devices’ case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, AMD has a 52-week high of and a 52-week low of

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