Earnings Season Heats Up for AI Chipmakers

Investors are bracing for a pivotal week in the tech sector, with a trio of key players set to report earnings. Cerebras, a pioneering AI chipmaker, will unveil its first public earnings report on Tuesday, following a tumultuous debut on the market last month. The company's stock has slid nearly 30% since its initial public offering, and options traders are anticipating an 11. 5% move in response to the report.

Meanwhile, Micron, a stalwart in the memory chip space, will face a crucial test on Wednesday. The stock has been on a tear, driven in part by aggressive call-buying in the options market, and traders are expecting a significant 10% swing. Notably, options volumes in Micron were evenly balanced on Monday, but call premiums accounted for a substantial $2. 6 billion of the $3.

3 billion in options traded. In a sign of bullish sentiment, a sizable $61 million call contract was purchased, betting on the stock's continued upward trajectory. Elsewhere, Super Micro Computer is generating buzz after unveiling a new data center blueprint in partnership with Nvidia. The stock has surged 16% in response, and options traders are piling into calls, with over 320,000 contracts traded compared to just 64,000 puts.

As the earnings season heats up, these AI chipmakers will be closely watched for signs of growth and innovation in the rapidly evolving tech landscape.

Source: CNBC