2 Semiconductor Stocks Staging Post-Earnings Bear Gaps

QRVO is on track for its worst day on record

Big Tech will be taking over the earnings confessional over the next couple of days, with chip names among those reporting. Advanced Micro Devices, Inc. (NASDAQ:AMD) just announced a profit beat for the third quarter, but also shared a dismal outlook for its incoming fourth quarter. Meanwhile, Qorvo Inc (NASDAQ:QRVO) issued a dismal outlook for the third quarter despite beating second-quarter estimates.

AMD was last seen down 8.7% to trade at $151.79 at last glance, on track to snap its four-day win streak with its biggest single-day percentage loss since July. Shares are slipping back below the 20-day moving average after yesterday’s rally above it, but now carry a 53% year-over-year gain.

QRVO is in even worse shape, down 26.5% to trade at $73.83 at last check and pacing for its worst day on record. The equity earlier hit a four-year low of $71.31, and is now gapping firmly below overhead pressure at the 40-day moving average. So far in 2024, share shave shed 34%.

The options pits are buzzing with activity. AMD has seen 370,000 calls and 207,000 puts traded so far today, while 2,351 calls and 10,000 puts have been exchanged for QRVO. That is 2 and 61 times the intraday average volume, respectively. The most active contract for the former is the weekly 11/1 150-strike put, and for the latter it’s the November 55 put, with new positions being opened at both.

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