On August 5, GraniteShares 2x Long AMD Daily ETF declined 16% in pre-market trading, trading at $51.29/share, with turnover of $6.0055 million. As a 2x leveraged ETF tracking AMD, its decline directly reflects approximately 8%-9% downside in the underlying stock.
On the news front, AMD released its second-quarter earnings after market close, reporting revenue and earnings per share that both exceeded consensus expectations, with gross margin hitting a record high of 56%. However, the market reaction was a classic sell-the-news event, as Q3 guidance failed to demonstrate the acceleration that investors had anticipated. The AI data center business accounted for 58% of revenue but carried gross margins below the company average, with growth costs appearing on the balance sheet for the first time. Multiple investment banks had previously raised AMD price targets to $500, setting aggressive growth expectations that the forward guidance could not satisfy, prompting concentrated long-position exits.
Notably, the ETF had surged 8.9% during the prior regular session amid broad semiconductor sector strength and pre-earnings optimism, amplifying the reversal once results landed.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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