TradingKey – AMD sees a massive wave of pre-earnings hedging sell-offs, triggering a sharp decline of over 7% in its stock price, with technicals facing the risk of a further 10% drop.

On November 2 Eastern Time, Advanced Micro Devices (AMD) plummeted 7.52%, falling below the $500 mark to close at $466.84. In overnight trading, AMD’s stock price rose, narrowing its decline. However, against the backdrop of the U.S. midterm elections, AMD’s stock price is more likely to continue facing downward pressure.

The sharp decline in AMD’s stock price ahead of its earnings report is primarily due to spreading anxiety over capital expenditures and return on investment triggered by global tech giants. High full-year CapEx at Alphabet and Amazon has…