S hares of Advanced Micro Devices (NASDAQ: AMD) were heading lower today after the chipmaker posted disappointing results and guidance in its first-quarter earnings report. As of 2:44 p.m. ET, the stock was down 7.3% after falling as much as 10% earlier in the session.

Delving into the details, we found 36% of traders were bullish, while 51% showed bearish tendencies. Out of all the trades we spotted, 12 were puts, with a value of $591,721, and 21 were calls, valued at $1,330,164.

Advanced Micro Devices and Super Micro Computer led a selloff in chip stocks on Wednesday after their earnings disappointed investors who had piled into the sector on optimism about AI. AMD slumped nearly 10% and was on course to lose more than $21 billion in market value.

Advanced Micro Devices, Inc (NASDAQ: AMD) was trading flat Tuesday ahead of its first-quarter earnings print set to take place after the market closes.

John Ballard has positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. Invest better with The Motley Fool. Get stock recommendations ...

Advanced Micro Devices stock has seen significant gains in the recent past, but fundamentals have failed to keep pace. Find out why AMD stock is a Sell.

AMD is already doing business with Meta and Microsoft, which are buying the MI300 chips as an Nvidia alternative. Even if Nvidia remains the runaway leader, that's fine. AMD can do very well as a notable competitor.