There’s one sector that’s hotter than anything else in the market.
And I’m watching a single stock.
The evidence of a massive incoming move is everywhere.
The semiconductor sector is almost too hot to touch right now. And I can list three examples off the top of my head…
- Intel Corporation (NASDAQ: INTC):
2. Atomera Incorporated (NASDAQ: ATOM):
3. AXT Inc (NASDAQ: AXTI):
The stock I’m watching is already showing us good momentum. It’s running alongside the rest of the sector.
But today, a huge catalyst drops that promises to spike the volatility even further.
And we make our best trades during times of high volatility.
This is my #1 watch today…
The Intel Blueprint
When INTC announced earnings on April 23, the stock had already been climbing for weeks.
It spiked 59% in April alone to make new all-time highs.
After the earnings announcement, INTC surged even higher. Pushing the total move in April to 116%.
Here’s the crazy part…
Options contracts multiply the size of these moves exponentially.
A 150% spike from a stock, with a short-dated options contract, could translate to a 1000%+ move in the options value. Easily. I’ve seen it happen.
There’s another semiconductor stock sitting in the exact same setup that INTC was in before its big announcement…
The Stock to Watch Today: Advanced Micro Devices
Advanced Micro Devices Inc. (NASDAQ: AMD) reports earnings after the bell today, May 5.
Take a look at the chart:
AMD gained nearly 60% since the start of 2026, setting a series of new records as AI hardware demand continues to accelerate.
That upward momentum looks almost identical to what INTC showed before its earnings breakout.
The options market is pricing in a move of up to 8% in either direction by the end of the week. Using AMD’s highs near $360, that would mean a potential run toward $389 on the upside, or a pullback to around $331 on the downside.
Analysts are expecting AMD to report $9.88 billion in revenue and adjusted earnings of $1.27 per share. Each figure is up roughly 33% year-over-year.
After Intel’s blowout quarter, analysts at D.A. Davidson upgraded AMD to a “buy” and hiked their price target to $375, citing “meaningful upside” to estimates.
When INTC beat expectations last month, AMD gapped up as well. That connection isn’t a coincidence.
The entire semiconductor sector is riding the AI wave, and AMD is one of the few that sit at its center.
Whether AMD beats or misses, one thing is certain: the market move will be big.
How to Trade It
There are three ways to approach a setup like this.
The first is to trade the volatility before the announcement. As earnings approach, options premiums expand, and the price action gets choppier.
Pay attention to intraday support and resistance in the hours leading up to the bell. Early directional moves can create opportunities before the data even drops.
The second is to trade the volatility after the announcement. This is where I find some of the cleanest setups. The stock whips hard in the hours after earnings, but when the dust settles, a direction emerges. That’s when the chart tells me exactly where it wants to go.
The third strategy is the earnings lotto. I take these trades. But I use a small position with defined risk, and a clear understanding of what I’m gambling on.
A few intentional lotto trades keep our instincts calibrated. So when a real high-probability setup appears, we don’t treat it like a coin flip. The gambling is already out of our system.
Whatever your approach on AMD, size matters.
Keep your position manageable and know what you’re risking before you enter.
AMD is reporting today after the bell.
The sector is on fire, and the setup mirrors what INTC showed us last month. Don’t be the trader who looks back at this chart next week, wishing they had paid attention.
Stay Street Smart,
Jeff Zananiri
*Past performance does not indicate future results, Not typical.
