Three key AI stocks to watch this week with traders expecting giant moves

After an up-and-down week for stocks around SpaceX and Federal Reserve chairman Kevin Warsh's debut, investors will get a fresh read on the pulse of the sector still at the heart of the bull market: semiconductors. On Tuesday, AI chipmaker Cerebras will report earnings after the bell – the company's first since going public last month. The stock's down almost 30% from its first day of trading and options prices imply a 11.5% move after its report. On Wednesday, it's Micron reporting, a key test for the stock that's been symbolic of the explosive move higher in memory names that's been powered by expensive call-buying in the options market. Micron implied volatility sits at 116, the highest in the S&P 500 alongside Sandisk and Western Digital . Traders anticipate a 10% swing, the biggest implied move for earnings since December 2024. The stock added almost 6% Monday to as high as $1204 per share, bringing its year-to-date move to 280 percent. Options volumes in Micron were balanced on Monday with about as many calls trading as puts, but call premiums accounted for $2.6 billion of the $3.3 billion in options traded, according to SpotGamma. The biggest single call contract traded in the market Monday was a $61 million purchase of 800 of the the 430-strike Micron call expiring July 17, a deep in-the-money bullish position that trades similarly to being long stock. …