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Is Advanced Micro Devices (AMD) stock a good buy?  • Benzinga


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symbol Society % Switch Price Invest

AMD

Advanced micro-systems
$ 101.52 Buy stocks

Advanced Micro Devices, more commonly known as AMD, was founded in 1969 as a semiconductor company that provided reliable microchips in the early days of the computer industry. Since its incorporation, AMD has continued to produce a wide range of computer products and has dominated the graphics processing unit (GPU) market with its main competitor, Nvidia..

Overview of advanced medical devices

Founded in 1969 by Jerry Sanders and colleagues, AMD had fairly humble beginnings as a supplier of microchips that guaranteed quality control practices to U.S. military standards.

Over time, AMD has developed an abundance of reliable products such as RAM chips, multipliers, and logic chips, which has seen them become a big name in the computer and semiconductor industries. Over the 50-year history of the company, AMD has seen more than a few significant events, comprising:

  • The development of the M2505 in 1971
  • A technology exchange agreement with Intel in 1981
  • The acquisition of ATI Technologies in 2006
  • The founding of GlobalFoundries Inc., a partnership with Advanced Technology Investment Co. in 2008
  • The acquisition of SeaMicro in 2012
  • The reorganization of the company in 2014 into two groups: IT and graphics and business

AMD history

As mentioned above, AMD’s stock history has been one of the extreme and frequent fluctuations. For example, from 1983 to 1987, stock prices remained fairly stable (in the $ 12 to $ 16 range) until they steadily declined to an abysmal $ 1.90 by the end of 1990. .

More recently, however, AMD’s stock price appears to be trending upward, as it went from $ 1.77 at the end of 2015 to a current price of $ 32 (as of September 2018). If you had invested at the start of this trend, you would be left with $ 18.07 for every dollar invested.

Should You Buy AMD Stock?

You will have to make this decision for yourself. But here are some essential facts.

Benefits of buying AMD shares

  • AMD currently is just behind Nvidia as the most prominent name in the GPU industry thanks to the popularity of its AMD Radeon graphics cards.
  • AMD has spent a lot of time in recent years developing exciting and competitive products. Earlier this year, the company announced the second generation of the Ryzen processor, which AMD has called the most powerful desktop processor in the world.
  • AMD’s recent success in the GPU market has brought it back years of losses. As AMD continues to transition into this market, it is likely that the company’s profits will continue to grow.

Cons of Buying AMD Stocks

  • While investors seem to be buying into the AMD hype, many analysts believe recent stock prices are as high as they’ll ever be. For example, BMO Capital Markets recently lowered its price target for AMD to $ 15.
  • AMD has significant competition, and it is not known whether it will be able to outperform its competitors. Nvidia continues to dominate the GPU market with no signs of slowing down, and Intel is still the dominant name in the processor and microchip industries.
  • The current AMD share price is way above what most analysts believe it is worth. The consensus target of around $ 18, which is typically above the share price, is currently almost half of the actual price.

How to buy AMD

If you are convinced that AMD is a worthwhile investment, you can buy shares in the company without much effort. To invest in AMD, follow a few simple steps:

  1. Decide how much you want to invest

    The first step in investing in a business is deciding how much you plan to buy based on the money you have available and the current price per share of the stock. You will need to provide this information to your broker so that they can place your order.

  2. Find a suitable broker

    Since AMD is a publicly traded company, it can be purchased by any brokerage firm.

    Therefore, it is up to you to decide which brokerage firm best suits your needs. Benzinga went ahead and made our choice from the best online brokers. If you’re a new trader and you’re not sure where to start, take a look at some of our top-ranked brokerages below.

  3. Place your order

    Your broker will place an order on your behalf, based on the amount you have determined you wish to invest. Depending on your brokerage, the process will be a little different.

Best Online Stock Brokers

Future outlook for AMD share

AMD’s future is unclear. While the company appears determined to grow its market share through the development of exciting new consumer products, it faces stiff competition from Nvidia and Intel. The competition is getting fierce enough to start squeezing margins.

Final thoughts

As the company continues to deleverage, AMD is not in as strong a financial position as Intel. In addition, the company no longer owns its manufacturing processes, which leaves it at the risk and peril of its suppliers. Even though the company faces dozens of challenges, management discussions indicate no major concerns for the future.

Much of its success going forward is likely to depend on the broader market performance and general technology trends.

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