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Advanced Micro Devices (AMD) reports Q4 2025 earnings on February 3rd after market close, riding remarkable momentum that has propelled shares 90% over the past year. Just last month, on January 13th, KeyBanc upgrade to "Overweight" with a $270 price target signals intensifying optimism about the company's data center dominance and AI chip trajectory.
AMD shares currently trade around $235, having recovered sharply from the tech crash in November and December. The stock's powerful rally reflects growing Wall Street confidence that CEO Lisa Su's strategy of challenging both Intel in CPUs and Nvidia in AI accelerators is generating significant financial momentum. KeyBanc's upgrade cited AMD being "largely sold out" of server CPUs for 2026, with potential for 10% to 15% price increases in Q1.
For traders looking to amplify exposure to AMD's characteristically volatile earnings moves, Direxion's AMD Bull 2X Shares (AMUU) and Bear 1X Shares (AMDD), launched February 12, 2025, provide tactical tools to trade the stock's explosive swings without traditional margin requirements.
Q4 2025 Earnings Expectations
Wall Street expects AMD to report earnings of $1.10 per share for Q4, representing 25% growth from $0.88 in the year-ago quarter. For full fiscal 2025, analysts project $3.12 per share, up 19.1% from $2.62 in fiscal 2024. The real excitement centers on fiscal 2026, where estimates call for $5.43 per share, an explosive 74% year-over-year increase that would validate AMD's massive AI infrastructure investments.
AMD's recent earnings track record indicates that management is currently on the right track. The company reported Q3 earnings of $1.20, meeting Wall Street expectations on revenue of $9.2 billion, up 36% year-over-year. Data center segment revenue hit $4.3 billion, up 22% year-over-year, driven by strong demand for 5th Gen AMD EPYC processors and AMD Instinct MI350 Series GPUs. Client and gaming segment revenue surged 73% to $4 billion, powered by record sales of Ryzen processors.
The quarterly performance prompted CEO Lisa Su to declare: "Our record third quarter performance and strong fourth quarter guidance marks a clear step up in our growth trajectory as our expanding compute franchise and rapidly scaling data center AI business drive significant revenue and earnings growth."
KeyBanc Upgrade and Surging Analyst Optimism
KeyBanc's recent upgrade catalyzed a rally based on supply chain checks revealing intense demand from hyperscalers (large-scale data center operators like Microsoft, Meta, and OpenAI). Analyst John Vinh's research found AMD essentially sold out of server CPUs for 2026, creating pricing power that could translate to 10% to 15% price increases in Q1 2026.
The firm projects AMD's AI-specific revenues reaching $14 billion to $15 billion in 2026, driven by demand for MI355 accelerators and the upcoming MI455 product line. Bank of America echoed this optimism, predicting a "beat and raise" scenario near term, citing growing data center exposure and strong product execution.Â
BofA highlighted major catalysts including OpenAI's 1 gigawatt contractual deployment and Oracle's 500 megawatt installation, which could represent over $20 billion in net revenue for AMD.
Trading AMD Earnings With Direxion's Leveraged Single-Stock ETFs
AMD's combination of strong fundamentals, analyst upgrades, and historic volatility around earnings creates ideal conditions for leveraged instruments. With shares up 92% over the past year but still trading 15% below the $267 October peak, February 3 earnings could determine whether AMD breaks out to new highs or consolidates recent gains.
Bullish Trade: AMUU
The Direxion Daily AMD Bull 2X Shares (AMUU) seeks 200%, before fees and expenses, of AMD's daily performance through financial instruments.
- Targets 200% of AMD's daily performance
- When AMD rises 1%, AMUU aims for a 2% gain (before fees)
- When AMD falls 1%, AMUU typically drops 2% (before fees)
- Suitable for traders expecting Q4 beats, strong fiscal 2026 guidance, or belief that data center momentum and AI chip demand will drive positive reaction
- Launched February 12, 2025, capturing AMD's powerful rally
- Average daily volume: 194,000 shares
- Currently trading around $61, up 154% since inception in February 2025, designed for traders betting server CPU sellout and AI revenue acceleration will exceed expectations
Bearish Hedge: AMDD
The Direxion Daily AMD Bear 1X Shares (AMDD) provides inverse exposure to AMD. Note that AMDD seeks -100% (1X inverse), before fees and expenses, not -200%, making it less aggressive than some other inverse products.
- Seeks inverse (-1X) daily performance versus AMD
- When AMD drops 1%, AMDD aims for a 1% gain (before fees)
- When AMD rises 1%, AMDD typically falls 1% (before fees)
- Valuable for traders concerned about Nvidia competition, potential guidance disappointment, or profit-taking after the stock's 92% annual surge
- Allows portfolio hedging without short-selling* restrictions in retirement accounts
- Average daily volume: 3,569,000 shares (significantly higher than the bull fund)
- Provides defined-risk bearish exposure for traders worried valuation has stretched too far ahead of fundamentals
Both AMUU and AMDD reset their exposure daily and are designed for short-term trading rather than buy-and-hold positions. The funds will lose money if AMD's performance is flat over extended periods, and compounding effects mean multi-day returns will differ, sometimes significantly, from simple multiples of AMD's performance.
AMD enters February 3 earnings with extraordinary momentum. Server CPU sellout for 2026, $14 billion to $15 billion AI revenue projections, and major hyperscaler deployments from OpenAI and Oracle position the company for potentially explosive growth.Â
Yet with shares up 90% over the last year and trading at elevated multiples, any guidance disappointment could trigger sharp profit-taking.Â
To learn more about all Direxion's Single Stock Leveraged and Inverse ETFS, Click Here
Investing in leveraged and inverse ETFs involves significant risk. These products are designed for short-term trading and should not be expected to track the underlying stock's performance over periods longer than a single day.
*Short selling:Â Short-selling is a trading strategy where investors borrow shares and sell them, hoping the stock price will fall.
The Funds do not seek to achieve their stated investment objective for a period of time different than a trading day. Investing in a Direxion Shares ETF may be more volatile than investing in broadly diversified funds. The use of leverage by the Fund increases the risk to the Fund. The Direxion Shares ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk and the consequences of seeking daily leveraged investment results and intend to actively monitor and manage their investment. Â
Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in AMUU.
An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.
Advanced Micro Devices, Inc. Investing Risk – AMD faces risks associated with: the highly-competitive nature of the semi-conductor industry, which includes large dominant participants; economic and market uncertainty; reductions in demand for its products; potential concentration of revenues in a few large clients; geopolitical events and pandemics; adequate protection of technology or other intellectual property; exchange rates; among other risks.
Semiconductor Industry Risk – Semiconductor companies may face intense competition, both domestically and internationally, may have limited product lines, markets, financial resources or personnel and may face risks related to the availability of materials.
Technology Sector Risk — The market prices of technology-related securities tend to exhibit a greater degree of market risk and sharp price fluctuations than other types of securities.
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