The earnings season is in full swing: over 200 companies in the S&P 500 index (SPX 500 mini on FXOpen) have reported their current cycle results, with average earnings up 6.5% year-on-year and revenue growth of 4.1%, according to a client note from Oppenheimer Asset Management published on Monday.

This week, investors are awaiting reports from mega-cap companies, including Apple (AAPL), Microsoft (MSFT), Facebook (META), and Amazon.com (AMZN). Among other major brands are Intel (INTC), Boeing (BA), Pfizer (PFE), Exxon Mobil (XOM), as well as chipmaker AMD, whose second-quarter earnings report will be released today after the close of the main trading session.

Analysts expect AMD's earnings per share to rise from $0.62 to $0.68.

What does the AMD chart indicate?

Despite the S&P 500 index (SPX 500 mini on FXOpen) rising approximately 15% in 2024, AMD's share price remains near its January start price.

Technical analysis of AMD's share chart shows that the price was in an uptrend (shown in blue) in the first half of 2024, but the trend turned downwards (shown in red) after the price exceeded the psychological level of $200.

Today, AMD's share price is near a support block formed by:
→ the long-term trend line (shown in orange);
→ the lower boundary of the downward channel;
→ the current yearly low around $135 per share.

It is possible that today's earnings report could provide a fundamental driver (e.g., higher-than-expected earnings per share) for a reversal upwards from this support block.

Meanwhile, forecasts remain optimistic. According to predictions from 34 Wall Street analysts surveyed by TipRanks, 28 recommend buying AMD shares. On average, they forecast AMD's price to reach $194.93 (nearly +40% from current levels) within 12 months.

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