Advanced Micro Devices Stock

In this article we’ll be talking about Advanced Micro Devices stock in terms of it’s recent stock movement, and major developments as well as a recommendation for whether or not you should buy. In an uncertain time where many people who are new to the stock market are shuffling to dip their toes into the water that is the New York Stock Exchange, it’s a reasonable question to ask whether a stock like AMD should be on investors’ watchlists. Throughout this article there will be solid advice based on firm foundation on whether or not this is a good stock to invest in.

What is Advanced Micro Devices?

Advanced Micro Devices is a semiconductor company which specializes in microprocessors, CPUs, servers, and motherboards. Basically, it makes anything and everything microtechnology related that aren’t the actual computers that gets shipped by companies like Dell, HP, and Samsung. They have a wide variety of industries that they work in and are extremely well known for their CPU line, Ryzen. the CPUs have been on par or better than their Intel counterparts since the Ryzen series came about. Intel is their main competition, so this is an extremely competitive product.

Recent Stock Movement

Recently, AMD stock has been quite sporadic, mostly due to the coronavirus pandemic, and has ranged from 36 dollars to nearly $60.00 per share over the last six months. For as long as AMD has been listed on the New York Stock exchange, it has seen numerous occasions where it has spiked and then dived. One of these dives was in the 2000s at the height of the .com bubble. Another fall began in early 2006 when the company’s stock price fell from a modest $40 per share to less than $2 per share by the end of 2008. Since 2008 the company has seen a huge growth in its stock price yet again due to its ability to compete with Intel courtesy of its Ryzen series. Time will only tell what will happen with the stock in the future however AMD’s stock price is currently seeing record highs, and so long as it continues to improve its CPU computing power and produce chips that are able to compete with even the largest companies its stock price will only increase.

AMD Developments

AMD has had numerous developments in personal computing chips thanks to its Ryzen series. AMD is also able to compete incredibly well with both NVIDIA, in the GPU department, and Intel, with its CPUs. AMD has recently put out more powerful chips than ever at a lower cost than Intel. A 16 core CPU from AMD is only $40 thanks to its Opteron series which has put a ton of pressure on Intel in the server department. Corporate servers are a huge means of profit for Intel and AMD. Breaking intel’s near monopoly on the server market would be a huge win for AMD and a huge loss for Intel. If I were in the shoes of either of these companies, I would want to be AMD.

Should You Invest in Advanced Micro Devices Stock?

AMD’s considerable grasp on computing power and, likely, its continued innovation in microtechnology will push it to grow higher than ever in the near future. Currently the AMD stock price sits at $53 per share, however, its PE ratio is 124.86 and is highly overvalued, not to mention the fact that it is showing bearish patterns. With this stock, although the company is doing incredibly well and will continue to perform that way, I would hold off on buying for six to eight weeks and seeing how the stock performs before buying.

Sources:

https://finance.yahoo.com

https://money.cnn.com/data/markets/

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