Want to claim 6 FREE stocks? Head over to Webull to get started.
Advanced Micro Devices, more commonly known as AMD, was founded in 1969 as a semiconductor company which supplied reliable microchips in the early days of the computer industry. Since its incorporation, AMD has gone on to produce a vast array of computer products and has dominated the Graphics Processing Unit (GPU) market along with its main competitor, Nvidia.
Advanced Medical Devices at a Glance
Founded in 1969 by Jerry Sanders and his colleagues, AMD had fairly humble beginnings as a microchip supplier which guaranteed United States Military Standard quality control practices.
Over time, AMD developed an abundance of reliable products such as RAM chips, multipliers and logic chips, which pushed them to become a prominent name in the computer and semiconductor industries. In the company’s 50-year history, AMD has gone through more than a few noteworthy events, including:
- The development of the Am2505 in 1971
- A technology exchange agreement with Intel in 1981
- The acquisition of ATI Technologies in 2006
- The foundation of GlobalFoundries Inc., a partnership with Advanced Technology Investment Co. in 2008
- The acquisition of SeaMicro in 2012
- The 2014 reorganization of the company into two groups: computing and graphics and enterprise
History of AMD
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 stagnant (in the $12-$16 range) until steadily declining to an abysmal $1.90 towards the end of 1990.
More recently, however, AMD’s stock prices seem to be on an upward trend, as it has climbed from $1.77 at the end of 2015 to a current price of $32 (as of September 2018). If you had invested at the beginning of this trend, you would be left with $18.07 for every dollar you invested.
Should you buy AMD Stock?
You’ll have to make that decision for yourself. But here are some key facts.
Pros of purchasing AMD stock
- AMD currently sits 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 CPU, which AMD labeled as the most powerful desktop processor in the world.
- AMD’s recent success in the GPU market has brought it back from 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 purchasing AMD stock
- While investors seem to be buying into the AMD hype, many analysts are convinced that recent stock prices are as high as they will ever be. For example, BMO Capital Markets recently lowered its price target for AMD to $15.
- AMD has significant competition, and it’s unclear if it will be able to outperform its competitors. Nvidia continues to dominate the GPU market without any signs of slowing down, and Intel is still the dominant name in the processor and microchip industries.
- AMD’s current stock price is far above what most analysts would consider it to be worth. The consensus target of around $18, which is generally higher than the stock price, is currently nearly half of the actual price.
How to Buy AMD
If you’re convinced that AMD is a worthwhile investment, you can purchase shares of the company without much effort. To invest in AMD, follow a few simple steps:
- Decide how much you want to invest
The first step to investing in any company is deciding how much you plan to purchase based on how much money you have available and the current price per share of the stock. You’ll need to provide your broker with this information so it can place your order.
- Find a suitable broker
As AMD is a publicly traded company, it can be purchased through just about any brokerage firm.
As a result, it’s pretty much up to you to decide which brokerage suits your needs the best. Benzinga went ahead and made our picks for the Best Online Brokerages. If you’re a new trader and don’t know where to start, take a look at some of our top-ranked stock brokerages below.
- Place your order
Your broker will place an order on your behalf, based on the amount you have determined you want to invest. Depending on your brokerage, the process will look a bit different.
Best Online Stock Brokers
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
- Active traders
- Intermediate traders
- Advanced traders
- No account maintenance fees or software platform fees
- No charges to open and maintain an account
- Intuitive trading platform with technical and fundamental analysis tools
- Does not support trading in mutual funds, bonds or OTC stocks
Moomoo is a commission-free mobile trading app available on Apple, Google and Windows devices. A subsidiary of Futu Holdings Ltd., it’s backed by venture capital affiliates of Matrix, Sequoia, and Tencent (NASDAQ: FUTU). Securities offered by Futu Inc., regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Moomoo is another great alternative for Robinhood. This is an outstanding trading platform if you want to dive deep into smart trading. It offers impressive trading tools and opportunities for both new and advanced traders, including advanced charting, pre and post-market trading, international trading, research and analysis tools, and most popular of all, free Level 2 quotes.
Get started right away by downloading Moomoo to your phone, tablet or another mobile device.
- Cost-conscious traders
- Active and Advanced traders
- Over 8,000 different stocks that can be sold short
- Access trading and quotes in pre-market (4 a.m. to 9:30 a.m. ET) and post-market hours (4 p.m. to 8 p.m. ET)
- No minimum deposit to open an account.
- No chat support
This latest groundbreaking technology is IBKR GlobalAnalyst, a new trading tool that helps investors compare the rate of PEG or price-earnings growth valuations and provide more immediate and comprehensive financial metrics of stocks, globally.
Recognizing that stock selection can be challenging for investors to compare the valuations of domestic and international stocks, Interactive Brokers created GlobalAnalyst to offer investors a simple, yet powerful tool to easily evaluate investment opportunities around the world.
Using GlobalAnalyst, investors can search for stocks by region, country, industry, market capitalization and currency to uncover undervalued stocks worldwide. The resulting table displays the current market and financial metrics, including the PEG Ratio. The PEG Ratio is the PE ratio divided by the three-year compound earnings growth rate, and smaller PEG Ratios typically indicate undervalued companies.
- Price earnings growth valuations
- Easily evaluate investment opportunities
CenterPoint Securities is ideal for active traders who demand access to advanced tools and services. While investors and casual traders are likely to be content with the basic offerings of traditional online brokerages, active traders will benefit from CenterPoint’s suite of advanced trading tools. If you value execution quality, access to short inventory, advanced trading platforms, and accessible customer service, CenterPoint is an excellent choice.
- Intermediate to Advanced traders
- High-volume traders
- Momentum traders
- Short sellers
- Unrivaled access to short inventory
- Flexible order routing for improved executions
- Discounts for active traders
- Advanced platform with fast executions
- Reliable customer service
- Not designed for beginner or low-volume traders
Future Outlook for AMD Stock
AMD’s future is unclear. While the company seems committed to growing its market share through the development of new and exciting consumer products, it faces tough competition from Nvidia and Intel. The competition is getting fierce enough that it may begin to compress margins.
While the company continues to shed debt, AMD is not in as solid a financial position as Intel. In addition, the company no longer owns its manufacturing processes, which leaves it at the risk of its suppliers. Even though the company faces dozens of challenges, discussions from management don’t indicate any major future concerns.
Much of its success going forward will likely hinge on broader market performance and general tech trends.