Futures Modestly Higher as Market Sentiment Remains Fragile
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy AMD?
Futures are modestly higher this morning as markets try to rebound from Monday's broad declines, but sentiment remains fragile with tariff worries and AI-related risk aversion still front and center. The rebound in futures suggests some dip-buyers are stepping in, particularly in tech and cyclical names that were oversold, though overall risk appetite is cautious. Investors are also focused on corporate earnings releases, which can offer fresh catalysts amid the broader macro noise. A number of large companies across key sectors are reporting quarterly results, and their performance could help shift sentiment and provide fresh direction for index moves.Despite this early rebound attempt, the backdrop from global markets underscores persistent pressure. Asian equities, particularly IT-heavy indices, extended declines with significant weakness seen in Indian markets as software and service stocks sold off sharply on renewed fears about the long-term implications of AI on traditional business models and profitability.Currency and commodity markets are also reflecting these dynamics. The U.S. dollar's behavior is closely tied to interest rate expectations and trade policy developments, while commodities like gold have seen price support as traders hedge against continued market volatility and policy risk.In pre-market trading, S&P 500 futures rose 0.14%, Nasdaq futures rose 0.45% and Dow futures rose 0.26%.Check out this morning's top movers from around Wall Street, compiled by The Fly.HIGHER -AMDup 9% after the company and Metaannounced a six-gigawatt agreement to power Meta's next generation of AI infrastructure across multiple generations of AMD Instinct GPUsIntuitup 6% after the company and Anthropic entered a multi-year partnership to bring custom AI agents to mid-market businesses on the Intuit platform and personalized experiences for consumers and businessesUP AFTER EARNINGS -Keysight Technologiesup 13%Bed Bath & Beyondup 3%Home Depotup 2%Keurig Dr Pepperup 2%Elancoup 1%DOWN AFTER EARNINGS -Amer Sportsdown 6%Hims & Hersdown 6%Planet Fitnessdown 5%Kratos Defensedown 3%DigitalOceandown 2%
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 200.210
Low
210.00
Averages
289.13
High
377.00
Current: 200.210
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Mixed Close for US Stocks Amid Iran War Impact
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- Surge in Oil Prices: WTI crude oil prices soared over 6% to an 8.25-month high following Iran's attack on oil tankers, which is expected to elevate inflation expectations and impact the overall economic environment and investor confidence.
- Strong Manufacturing Index: The US February ISM manufacturing index unexpectedly rose to 52.4, surpassing the market expectation of 51.5, indicating economic resilience that could influence the Federal Reserve's monetary policy direction, leading to shifts in future rate hike expectations.
- Optimistic Earnings Outlook: More than 90% of S&P 500 companies have reported earnings, with 73% exceeding expectations, and Q4 earnings growth is projected at 8.4%, providing market support despite geopolitical risks.
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- Market Reaction: Nvidia's stock slipped about 0.13% in after-hours trading, indicating market sensitivity to export restriction news, even though the stock has gained over 59% in the past year.
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- Market Outlook Uncertainty: Despite AMD's revenue rising 34% to $34.6 billion last year, its growth rate has slowed from 14% the previous year, making 2026 a pivotal year where sustained high growth will directly affect stock performance.
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See More
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- Partnership Overview: AMD has entered a multi-year deal with OpenAI, which involves deploying up to 6 gigawatts of AMD chips, presenting significant growth opportunities for AMD, yet raising concerns about OpenAI's profitability that could impact AMD's long-term financial stability.
- Market Performance Comparison: In 2025, AMD's stock surged by 77%, outpacing rival Nvidia's 39% growth, indicating strong investor confidence driven by AMD's launch of next-gen chips that could capture market share.
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See More
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- Increased Valuation Appeal: Nvidia's forward price-to-earnings ratio has dropped from the mid-30s in August to 22 times, marking the lowest level since last April's tariff announcement, suggesting that the current stock price is more attractive amid surging AI spending, potentially drawing more investor interest.
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See More
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- Mixed Market Performance: On Monday, the S&P 500 closed up 0.04%, while the Dow Jones Industrial Average fell 0.15%, and the Nasdaq 100 rose 0.13%, reflecting a divergence in market sentiment influenced by the ongoing war in Iran, with increased demand for defense and energy stocks.
- Surge in Oil Prices: WTI crude oil prices soared over 6% to an 8.25-month high following Iran's attack on oil tankers, which is expected to elevate inflation expectations and impact the overall economic environment and investor confidence.
- Strong Manufacturing Index: The US February ISM manufacturing index unexpectedly rose to 52.4, surpassing the market expectation of 51.5, indicating economic resilience that could influence the Federal Reserve's monetary policy direction, leading to shifts in future rate hike expectations.
- Optimistic Earnings Outlook: More than 90% of S&P 500 companies have reported earnings, with 73% exceeding expectations, and Q4 earnings growth is projected at 8.4%, providing market support despite geopolitical risks.
See More
US Considers Limits on Nvidia Chip Sales to China
- Export Limitation Policy: The US government is considering implementing a cap of 75,000 units on Nvidia's H200 chip sales per Chinese customer, which may also affect AMD's MI325 chips, indicating strict control over the Chinese market.
- Market Demand Analysis: Despite the limitations, total shipments to China are still expected to reach as high as one million units, reflecting strong demand from Chinese tech giants like Alibaba and ByteDance for high-performance chips.
- Market Reaction: Nvidia's stock slipped about 0.13% in after-hours trading, indicating market sensitivity to export restriction news, even though the stock has gained over 59% in the past year.
- Customer Procurement Intent: The 75,000 unit limit represents less than half of what Chinese firms expressed interest in purchasing from Nvidia, highlighting the tension between market demand for high-end chips and regulatory constraints.
See More
AMD's Partnership with OpenAI Raises Concerns
- Stock Performance Comparison: AMD's stock surged 77% in 2025, outpacing rival Nvidia's 39% growth, indicating strong performance in the chip market; however, this year it has declined by 8%, reflecting investor concerns over high AI spending levels.
- Risks of Partnership with OpenAI: AMD's multi-year deal with OpenAI involves supplying up to 6 gigawatts of chips, which could unlock growth opportunities, yet investors are worried about OpenAI's profitability, potentially impacting AMD's long-term financial stability.
- Market Outlook Uncertainty: Despite AMD's revenue rising 34% to $34.6 billion last year, its growth rate has slowed from 14% the previous year, making 2026 a pivotal year where sustained high growth will directly affect stock performance.
- Cautious Investor Sentiment: With AMD's current P/E ratio at 75 times earnings and pressures from its relationship with OpenAI, analysts recommend holding off on buying, indicating a lack of confidence in its future performance.
See More
AMD's Multi-Year Partnership with OpenAI
- Partnership Overview: AMD has entered a multi-year deal with OpenAI, which involves deploying up to 6 gigawatts of AMD chips, presenting significant growth opportunities for AMD, yet raising concerns about OpenAI's profitability that could impact AMD's long-term financial stability.
- Market Performance Comparison: In 2025, AMD's stock surged by 77%, outpacing rival Nvidia's 39% growth, indicating strong investor confidence driven by AMD's launch of next-gen chips that could capture market share.
- Investor Concerns: Despite AMD's impressive performance last year, its stock has declined by 8% this year due to heightened concerns over high spending related to artificial intelligence, while Nvidia's stock fell only 2%, reflecting market apprehension regarding AMD's close ties with OpenAI.
- Future Outlook: AMD's revenue rose by 34% to $34.6 billion in 2025, but investor caution remains regarding its ability to sustain high growth, especially given its current high valuation, which could affect its stock performance moving forward.
See More
Chevron and Lululemon Options Trading Activity Surges
- Chevron Options Volume: As of now, Chevron (CVX) options have reached a trading volume of 72,578 contracts, equivalent to approximately 7.3 million shares, which constitutes 64.7% of its average daily trading volume over the past month, indicating heightened market interest in its future performance.
- High Call Option Activity: Within Chevron, the $197.50 strike call option expiring on March 20, 2026, has seen 4,888 contracts traded today, representing about 488,800 underlying shares, suggesting an increased bullish sentiment among investors regarding the stock's upward potential.
- Lululemon Options Activity: Concurrently, Lululemon (LULU) options trading volume stands at 13,717 contracts, representing approximately 1.4 million shares, also accounting for 64.7% of its average daily trading volume over the past month, reflecting active market interest in its stock.
- High Put Option Activity: The $162.50 strike put option for Lululemon, expiring on March 6, 2026, has recorded a trading volume of 1,007 contracts today, representing around 100,700 shares, indicating some investors' concerns about potential downward price movements.
See More
Nvidia Stock Rating Upgraded to Buy Following Strong Quarter
- Market Reaction Discrepancy: Despite Nvidia's strong quarterly results and guidance, the stock fell over 9% on Thursday and Friday, which does not align with the robust demand for its AI computing platform discussed during the earnings call, indicating market confusion regarding future growth.
- Increased Valuation Appeal: Nvidia's forward price-to-earnings ratio has dropped from the mid-30s in August to 22 times, marking the lowest level since last April's tariff announcement, suggesting that the current stock price is more attractive amid surging AI spending, potentially drawing more investor interest.
- Analysts Optimistic on Future: Morgan Stanley has reinstated Nvidia as their top pick, replacing Micron, which surged due to AI-related memory price increases; analysts noted that while Nvidia's stock has stagnated over the past two quarters, its business has continued to strengthen, with expectations of a shift towards optimism for 2027 in the coming months.
- New Chip Development: Nvidia is designing a new chip focused on inference for everyday AI model usage, leveraging technology from Groq, an AI startup with which it signed a $20 billion non-exclusive licensing agreement, aiming to enhance AI infrastructure performance and value to counter competition from larger data center operators.
See More
