Advanced Micro Devices reports $1.1B warrant charge: AMD under seller pressure

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AMD drops 17.63% to $402.63 today

Highlights

AMD reported third-quarter 2026 revenue of $13.38 billion and non-GAAP EPS of $2.09, with data center revenue up 97% year over year to $8.55 billion.
Quarterly profit included a $1.1 billion charge from warrants issued to OpenAI and Meta as AMD began shipments of Instinct MI450 accelerators.
Shares of AMD are trading below key moving averages with momentum indicators firmly negative, projecting a high probability of further downside toward $350.3 support in the next 2 to 3 days.

Robust AI sales offset by warrant charges as profitability dips

Advanced Micro Devices reported third-quarter 2026 revenue of $13.38 billion, alongside non-GAAP EPS of $2.09 and data center revenue of $8.55 billion, representing a 97% annual increase, according to 247wallst. While the jump in data center sales signals growing strength in its AI-focused segments, quarterly profitability was affected by a $1.1 billion charge related to warrants issued to OpenAI and Meta as AMD began shipping its Instinct MI450 accelerators, as reported by Ibtimes. These developments highlight robust underlying sales momentum but introduce near-term accounting impacts that have tempered headline results.

Oversold signals and strong downside momentum as resistance holds

On the technical front, AMD is trading below its MA-20 and MA-50 on the working timeframe, as well as below the MA-200 on the daily chart. Immediate resistance is outlined by the Ichimoku Kijun at $458.36, while support is noted at $350.3. Momentum indicators remain negative, with MACD and ADX showing strong downside trends. RSI, Stochastic RSI, and CCI are all in oversold territory, indicating a potential for seller exhaustion, although no reversal signal is present. Bull/Bear Power is deeply negative, confirming seller dominance intraday, while the Awesome Oscillator is neutral and does not reinforce the current trend.

Wide-range trading expected amid elevated volatility and downside risk

In the short term, AMD is expected to fluctuate within a broad range between $350.3 and $454.96, reflecting the current unusually high volatility. The likelihood of a sustained upward move remains low, with downside risk elevated. The baseline scenario sees AMD consolidating in a wide sideways channel; a breakout above $458.36 resistance would be necessary to signal a bullish reversal, while a close below $350.3 would likely result in renewed selling pressure.

Viktoras Karapetjanc, analyst at Traders Union, sees AMD’s strong data center growth as a key driver for its long-term outlook. While he notes short-term losses and technical weakness, the fundamental momentum from AI segment expansion stands out. Macro conditions and recent charges create volatility, but overall sentiment remains constructive. The expert believes AMD can regain strength if current support holds. "Despite near-term pressures, I remain optimistic that AMD’s innovation in AI hardware will underpin future upside once the market stabilizes."

Earlier, analysts noted that AMD's stock remained vulnerable to heightened volatility and political risks despite corporate advances in AI and quantum computing. With the latest earnings now highlighting strong data center growth but persistent technical weakness, traders should monitor the $350.3 support and $458.36 resistance for signs of a potential breakout from the current consolidation zone.

Source of Data: AMD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.