Advanced Micro Devices Inc. (AMD) and Sandisk Corp. (SNDK) delivered earnings beats this week, yet both stocks fell. While the market trend remains intact, risk management is key for now, suggests Lance Roberts, editor of the Bull Bear Report.
AMD posted record revenue, with a 50% year-over-year gain. Data center revenue more than doubled. Guidance for the current quarter came in near Wall Street estimates, but it fell short of “whisper” expectations. AMD shares initially fell by more than 8% and remained down a few days later.
AMD, SNDK (6-Mo. % Change)
Source: TradingView
Sandisk’s earnings report was similar. Its earnings per share beat consensus by more than 12%, revenue grew by a whopping 372% YOY, and gross margins held at 78%. Yet shares still fell roughly 10% because guidance for the coming quarter was slightly below the more-bullish estimates.
The thread across AMD, SNDK, and other AI-related stocks is that investors are expecting absolute perfection – not only in what happened but in guidance for what will happen. So, while the recent broad market action is bullish, the setup in tech deserves respect, especially since we’re just starting the weakest stretch of the calendar.
