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      Markets Will Get a Second Look at the AI Rally this Tuesday

      Published: just now

      Markets Will Get a Second Look at the AI Rally this Tuesday

      AMD, Super Micro Computer and Navitas Semiconductor are all set to report after the U.S. close on Tuesday, May 5, 2026.

       

      Last week’s move was very bullish for the markets. So this week, investors will get a second look into the AI rally to see if actual revenue, forward guidance and demand in other AI businesses are strong enough to justify last week’s move.

       

      AMD is the AI accelerator read, Super Micro is the AI server read, and Navitas is the speculative AI power-infrastructure read.

       

      The market already knows AI demand is strong. The question now is whether these stocks can catch up to the expectations already priced into the rally — and if not, perhaps allow markets to cool off.

       

      Last Week’s AI Earnings Read-Through

       

      Last week’s earnings gave the AI bulls enough to work with, especially outside the usual GPU names. 

       

      Company

      Result

      Guidance / forward read

      MaxLinearBeat. Q1 revenue came in at $137.2m, up 43% YoY.Guided Q2 revenue to $160m-$170m, well above Wall Street’s earlier $137.1m estimate. Infrastructure revenue grew 136% YoY, helped by optical data-centre demand.
      Monolithic PowerBeat. Q1 revenue rose 26% YoY to $804.2m.Enterprise Data revenue nearly doubled to $262.8m, helped by AI and server power-management demand.
      Google CloudStrong cloud read. Google Cloud revenue rose 63% to $20bn.Backlog nearly doubled to $460bn, showing AI services demand is moving beyond just capex headlines.
      Microsoft CloudStrong cloud read. Microsoft Cloud revenue rose 29% to $54.5bn.Commercial remaining performance obligation rose 99% to $627bn, while Azure and other cloud services grew around 40%.

       

      The AI story has support from cloud revenue, infrastructure chips and power-management demand, but support is not the same as surprise.

       

      This week, AMD, SMCI and Navitas need to show whether other parts of the AI market can catch up to what traders have already priced.

       

      Options-Implied Moves: The Market’s Benchmark

       

      The options-implied move is probably the cleanest guide for this setup.

       

      Not because price has to stop there, but because it tells us what the market had already priced before earnings. If the report is strong enough, price can break above the upper implied range. If the update disappoints, price can break below the lower range. Either way, the implied move gives us a benchmark for whether the reaction is normal, weak or a real repricing.

       

      These levels are based on May 5, 2026 pre-earnings pricing for the May 8, 2026 weekly options expiry.

       

      Stock

      Options-implied move

      Lower range

      Upper range

      AMDAround 8% either way$331.70$389.38
      SMCIAround 12.55%-12.77% either way$23.70$30.50
      NVTSAround ±$2.99 / 17.16%$14.45$20.43

       

      AMD’s implied range comes from options pricing ahead of earnings, while SMCI’s expected move has been reported around 12.5% and NVTS options pricing shows a wide earnings-week range into May 8 expiry.

       

      The key is not to treat these levels as hard targets. They are market expectations. If earnings beat or disappoint hard enough, price can move beyond them, which is why the chart zones still matter.

       

      AMD Chart Analysis

       

      Visual content

       

      AMD is the cleanest read on whether the AI accelerator story still has room to run. The chart is now testing the $336-$340 zone, with the aVWAP sitting nearby, so that area becomes the first support reaction zone into earnings. If buyers defend it, the pullback still looks contained. If it fails, the lower options-implied range near $331.70 becomes the next stress point.

       

      On the upside, AMD needs to reclaim $349.50 first before the chart starts to repair properly. After that, the $363 zone becomes the more important momentum level, while $389.38 marks the upper end of what the options market had priced before earnings.

       

      AMD setup

      Level / stat

      Read

      Lower options-implied range$331.70Downside benchmark if earnings disappoint
      Main support zone$336-$340First chart reaction area
      Reclaim level$349.50First level needed to repair momentum
      Momentum level$363Stronger upside confirmation area
      Upper options-implied range$389.38Benchmark for a stronger-than-priced reaction
      Short float2.20%Low squeeze risk
      Short interest35.65m sharesThis is not really a short-squeeze setup

       

      AMD’s short interest is not the exciting part here. With short float at only 2.20%, this is more about guidance and whether the AI accelerator story can still justify the valuation rather than a squeeze-style setup.

       

      Super Micro Chart Analysis

       

      Visual content

       

      Super Micro is more interesting because the key technical level sits just above what options have already priced. The chart is still below its old $29-$34 range, while the point of control sits around $31.70-$31.74. That POC matters because it sits above the $30.50 options-implied upside range.

       

      That makes the read very clean. A move into $30.50 would be strong, but still largely inside what the options market expected. A break above $31.70-$31.74 would be more meaningful because SMCI would be pushing beyond the implied range and trying to reclaim its old volume shelf.

       

      SMCI setup

      Level / stat

      Read

      Lower options-implied range$23.70Downside benchmark if earnings disappoint
      Gap zone$25.47-$26.20First downside chart reaction area
      Upper options-implied range$30.50Upper edge of the expected move
      POC / key resistance$31.70-$31.74Stronger confirmation if reclaimed
      Old range$29-$34Range bulls need to win back
      Short float16.84%High enough to matter
      Short interest86.79m sharesPotential squeeze fuel if earnings surprise

       

      The short-interest setup makes SMCI the more interesting squeeze candidate of the three. If earnings land well and price pushes through the POC, the move could become more than a normal post-earnings bounce. The catch is that Super Micro still needs to answer the margin question, because the market already knows AI server demand is real.

       

      Navitas Chart Analysis

       

      Visual content

       

      Navitas is the speculative one, and the chart is still range-based. Price is back near the $16 zone after rejecting around $18, which makes $16 the first area to watch. If it holds, the range is still alive. If it breaks, the lower options-implied range near $14.45 comes into view.

       

      The upside is just as simple. NVTS needs to reclaim $18 before traders can talk about a stronger momentum leg. Above that, the upper options-implied range near $20.43 becomes the next benchmark.

       

      NVTS setup

      Level / stat

      Read

      Lower options-implied range$14.45Downside benchmark if earnings disappoint
      Main support zone$16First chart reaction area
      First resistance$18Range level to reclaim
      Upper options-implied range$20.43Upper edge of the expected earnings-week move
      Short float23.32%Highest squeeze sensitivity of the three
      Short interest48.57m sharesCan make the move violent if the update surprises

       

      NVTS has the most squeeze-sensitive short-interest profile, but also the least stable revenue base. That means a strong AI power-infrastructure update can squeeze hard, while a vague update can just as quickly drag the stock back into the lower end of the range.

       

      Bottom Line

       

      The AI rally gets its second look after Tuesday’s U.S. close.

       

      Last week’s earnings helped keep the AI story alive, but this week is about whether AMD, Super Micro and Navitas can back that story up with numbers and forward guidance. The options-implied ranges give us the benchmark for what the market had already priced as of May 4, 2026.

       

      If price stays inside those ranges, the reaction may look big but still be broadly expected. If price breaks beyond them and holds, that is where the market is saying earnings were strong enough, or weak enough, to force a real repricing.

       

      For AMD, the main test is whether price can defend $336-$340 and eventually reclaim $349.50 and $363. For SMCI, the key level is $31.70-$31.74, because it sits above the implied move and lines up with meaningful short-interest risk. For Navitas, the range is simpler: $16 support, $18 resistance and $20.43 as the upper implied range.

       

      This week, AI earnings are the catalyst. The options market shows what was expected, the chart levels show where the reaction becomes meaningful, and short interest tells us where the move can get violent.

       

      DISCLAIMER: For educational purposes only. Trading comes with substantial risk, leading to possible loss of your capital. Traders are advised to do their own due diligence before investing.


       

       

       

       

       

       

      Alchemy Markets is a multi-asset brokerage providing retail traders with the same elite trading conditions, tools, and transparency typically reserved for institutions.

      This content may have been written by a third party. LiquidityFinder makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplies by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.
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