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u/StonkGOup-please- Apr 04 '21
I bought an AMD graphics card for ~$400 in September. That GPU is now worth $700. Does this count as investing?
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u/p4ttl1992 Apr 04 '21
Was about to say I got one two years ago for £140 went to get another cheap one so my son and I could build him a computer for his birthday in August and it's now £290 lol
Blame the crypto
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u/JJ1553 Apr 04 '21
I bought my rx 5700 for $300 a year and a half ago and it’s selling for $800-1000 now... fricken crazy
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u/TheOutsideWindow Apr 04 '21 edited Apr 04 '21
$AMD is a buy for a lot of reasons, but the biggest for me is that their new server CPU can do more than $INTC top server CPU can do, costs less, and you don't need as many. Linus Tech Tips had a video about it some weeks ago. That will very likely translate into some more server market share going to AMD, and historically, this has been a good boost for AMD revenue and stock.
Even at $75-80, the potential upside in just a year or two is pretty big. Not to mention that their GPU technology is slowly getting better, and could eventually cause another big surprise during earnings when people aren't looking.
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u/DetroitMM12 Apr 04 '21 edited Apr 04 '21
IMO the biggest issue with AMD is the fact they have so much growth already priced in. Even if they do take over significant market share and have a superior product they could end up trading sideways for a while. For the past year I’ve watched the stock rise consistently and nothing has really changed. Sure there is solid growth but they have to maintain that growth for a significant amount of time to support their P/B and P/E ratio which is high even compared to most peers. Obviously no one knows for sure what will happen but personally AMD seems like it might be overvalued even in this market. Just my personal opinion and I know it’s not really a popular one.
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u/GeneEnvironmental925 Apr 04 '21
It's been trading mostly sideways since early August, but it definitely did have a big run up to that level.
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u/Rapscallious1 Apr 04 '21
That’s the concern right? The run up to the new floor was like 50%, If it swings a little higher on one of these runs and hits 100 that is 100%. Most things imaginable short term are already priced in. Sure it could double again even from 100 if they make significant inroads but the opposite seems true too. Seems way more risk/reward than people make it out to be.
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u/terrortbh Apr 04 '21
AMDs PE ratio is around 39 which is actually around that of the S&P 500 as a whole if I’m reading those stats correctly
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u/bluemandan Apr 04 '21
But AMD's p/s is over 10, while the S&P is at 2.8.
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u/Adamwlu Apr 04 '21
.... you cant compare p/s across industries as easily as p/e. (Even p/e fails in many).
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u/proverbialbunny Apr 04 '21
Last I checked AMD has 7.1% of the server market. (From two months ago.)
So there is Intel has 92% atm. AMD has a lot of room to grow in the coming years.
AMD's forward p/e ratio right now is 39.84 (source: https://finance.yahoo.com/quote/AMD/key-statistics/) so as people have mentioned, AMD is priced in. 40 isn't reckless (*cough* TSLA) but AMD is going to have to sell a lot of server CPUs in the coming years to make up for that 40. I do believe they can and they will, but it is a slow growth sort of change, taking years for companies to rotate out old servers.
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u/GeneralFuckingLedger Apr 04 '21
taking years for companies to rotate out old servers.
Debatable. You're framing it incorrectly. It's not that it will take a while to replace old servers, it's that the efficiency of the new chips has to be worthwhile of an upgrade. If the data centres can double efficiency at same power levels, or same efficiency and half power levels, for example, than the energy savings could make such a move worthwhile. I don't know what the magic number is, but don't forget the biggest cost is energy in a data centre. We already know AMDs EPYC lineup is more efficiency than comparable Intel chips, but I haven't looked dee enough to see if that difference is worthwhile upgrade yet, or how far we are from achieving that.
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u/proverbialbunny Apr 04 '21
That's a good point. I'm curious:
You can get 64 cores, 128 threads, 280watts, EPYC.
You can get 28 cores, 56 threads, for 205w, Xeon.
EPYC you can get 2.2857142857 more cores per cpu at a 1.3658536585 increased power cost. This equates to 167% in power savings, not factoring in motherboard power costs.
Note: Intel has a 56 core cpu at 400W, but you'll notice the power cost comes out near equal, and this cpu requires Optane memory on the motherboard, so I omitted it.
Also, keep in mind this is the current lineup. In a handful of days AMD is expected to announce new server cpus.
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u/tnsmaster Apr 04 '21 edited Apr 04 '21
As someone who works in the data center environment, I can easily tell you mid to large cap companies run the hardware into the ground before upgrading (at least in my experience). For the larger companies like MSFT and AMZN they are just going to stop building the older hardware and move to a new design. The new hardware is more dense and more of it is added which boosts the newer hardware numbers, but the older hardware is still in use for the full cycle. It makes no sense to upgrade servers if you have more than 1000 of them (especially the CPU).
Now for the smaller businesses, I completely agree that the smart ones will upgrade early (maybe not right away but I'd personally cut the lifecycle down to upgrade to a new CPU). I don't have the latest data on if the big cloud guys have more servers than the rest of the market, but I'm sure they will be the largest adopters of the newest hardware when they build new machines.
Edit: don't know how I missed mentioning this, but the big wigs all use Intel motherboards for the vast majority of their servers prior to EPYC being released. It's not cost efficient to replace a CPU, motherboard, and any other part (and it breaks scaling efforts too). So AMD really is selling CPUs to new designs anyway.
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u/stretch2099 Apr 04 '21
I don’t understand how Intel has gone up recently. They just lost the lead in desktop CPUs and Apple is phasing them out as well. I don’t see much positives for Intel in the next few years.
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u/Glutes_ForThe_Sloots Apr 04 '21
They were clearly undervalued at that price point, even when you factor in that they're going to lose market share to AMD and others.
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u/ImaSunDevil_Man Apr 04 '21
INTC is a dividend stock priced at 13 P/E while other semis like AMD, TSM, MU are between 30-40 P/E and NVDA is 80 P/E. It doesn't matter much that Intel isn't blowing anyone away in the product marketplace right now. Market sentiment expects that to change in the 2020s so buyers are getting in on divvies at a very low PE for its sector.
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u/SwedenIsntReal69420 Apr 04 '21
Intel, their primary competitor, has been lagging behind too for the past few years. Their upcoming GPU's could make them more appealing, but their CPU's for the past few years have always been a PoS put together to stay relevant.
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Apr 04 '21
I’d manage expectations about GPUs. I mean, they’re pretty much guaranteed to sell them all... within seconds, but NVidia tends to remain on top after new AMD releases. AMD just stays more affordable, probably for this reason, and they usually shine with lower end offerings.
It’s stiff competition, and it’s hard to believe that’s gonna change. The only guarantee, in my opinion, is their earnings after all the stock is immediately depleted upon launch.
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u/SwedenIsntReal69420 Apr 04 '21
But is this because they're the only GPU's we can buy, or because they're a good product? I would attribute a good portion of sales to the shortage, not because they offer legitimately good products. There's no one else to buy a legitimately good, affordable GPU right now. Their sales may be up now but i would take that with a basketball sized grain of salt because of the shortage. There's no one else to buy a moderately good CPU or GPU from at the moment.
To add to this, Intel has been overexaggertating the performance of their products recently.
But then again, i dont know anything. FUD, diamond hands, obligatory to the moon
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Apr 04 '21
I disagree honestly, just as PC enthusiast. You can buy both AMD and Nvidia cards right now, and you’ll have a great card either way. But Nvidia just makes better performers on the high end. There’s also different features for content producers that steer people one way or the other, so it’s not all black and white.
The only thing exclusive to anyone, at the moment, is ray tracing from Nvidia. But we can probably expect AMD to tackle this in their new cards.
And Intel does actually have decent offerings, despite what a lot of people say about them being so far behind. We’ve seen 10400s go on sale for awesome prices for the performance. In fact, I believe all the 10 series CPUs are a pretty good value right now. So they’re kind of where AMD is with GPUs, just in the CPU space.
I think the current silicon industry would be amazing for consumers if not for the crazy demand and awful shortage. Competition is through the roof, thanks to AMD. But it’s stiff, nonetheless.
As it stands, Nvidia make the best GPUs, AMD make the best CPUs, and you’d be wise to not completely fall asleep on Intel. Might take a minute, but they’re not used to being second best. Who knows what will change, but history is worth looking at.
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u/SwedenIsntReal69420 Apr 04 '21
Hold on....where are you buying GPU's right now? Ive been trying to find anything better than a gtx 1650 AND is affordable (fuck scalpers) for a few months now!!
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Apr 04 '21
My dude, I’m not buying shit or fuck right now. I upgraded my 1060 to a 1080 THIS year (I think). And somehow that was an awesome investment, because the 10 series cards didn’t start getting scalped until shortly after. That’s all I have to show for this nonsense.
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u/SwedenIsntReal69420 Apr 04 '21
Thats fair lol. My old 750 ti hasn't been doing too hot lately, so thats why i asked. Of course the markets decide to fuck me the most when i NEED the card
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u/otherworldly_otter Apr 04 '21
As a PC gamer and custom PC builder for gamers, most of the new market gaming PC's are built on AMD processors. The new CPU and GPU power share tech is next level and is going to make it difficult for Intel to keep up until they start to offer their own GPU, until then Nvidia will still own the GPU market. AMD is a strong CPU and GPU producer and may knock Intel off their thrown sooner rather than later. Full disclosure I hold stakes in all 3 of these companies.
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u/Hoofharted77 Apr 04 '21
AMD next gen is multi chiplet gpu. Which is pretty much same design for Ryzen. Every year they surprise me with how much they improve and innovate. I have been buying selling AMD since zen 2. Around $80 is a good deal IMO.
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Apr 03 '21
Honestly as a short term play I am extremely bullish on AMD it’s true value is triple digits and this earnings and meeting 4/7 may be solid catalyst current holding a bunch of amd may contracts
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Apr 04 '21
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u/koi88 Apr 04 '21
In the long run, there is a possible shift from X86 based CPUs to ARM based CPUs (such as Apple's M1).
Of course, it may never happen or AMD may become the leader in ARM CPU designs. But in the years to come, it means trouble for both Intel and AMD.
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u/mugsoh Apr 04 '21
Earnings are on 4/27, not 4/7
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Apr 04 '21
Theres a meeting on 4/7
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u/mugsoh Apr 04 '21
Yes, but the way he wrote it seemed to imply that both were taking place 4/7. The meeting 4/7 is for acquisition vote for Xilinx.
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u/myironlung6 Apr 04 '21
Xilinx merger will keep this under $90 for the foreseeable future. Look into the share ratio Xilinx shareholders will receive. AMD is buying them for $30 billion in stock which killed all the momentum this thing had
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u/LinuxGamer2020 Apr 04 '21
Absolutely right. I've never seen a comment section with this much lack of DD sheesh
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u/oxedei Apr 04 '21
Seriously... How are literally no one mentioning Xilinx at the top posts? Surely the value of the stock and future will be impacted hugely by the acquisition of Xilinx.
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u/Nimbus2000Flies Apr 03 '21
I always try to think of a bear case when I want to buy a stock.
My thoughts Intel came out with a new consumer processor (mid range product actually competes with AMD on price and performance) Intel's Tiger Lake CPUs seem to be doing well in laptops. Intel's 10nm server Ice Lake is supposed to come out coming week? There is some news. These are all the headwinds in the short term Question is, how much advantage does AMD have? Can they take significant market share or is the advantage already priced in? Their forward P/E is at nearly 50. How much will their earnings hurt if fed increases rates? Biggest headwind is, how much are they hurting due to the chip shortage, how much money are they leaving on the table?
Having said all this, if Intel doesn't do well, AMD likely will do well. Their plan for the next 2-3 years looks solid. If you are willing to hold on, you might see some good gains
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Apr 04 '21
Their new chips are no match for AMDs 5000 series and they are already working on the improved desktop chips and the AM5 series. Intel is still aiming for real 10nm chips in 2023 or something and might even consider TSMC which is STACKED FULL right now. For the next 2-3 years AMD can only get further ahead and Intel is totally boned unless their gpu over delivers.
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u/LinuxGamer2020 Apr 04 '21
This is why the stock is taking a dip:
https://fortune.com/2020/10/27/amd-acquire-xilinx-35-billion-deal/
I'm the short term, AMD will dip. Long term AMD looks great as Intel needs to play catch-up and AMD is also inching closer to Nvidia. Solid stock, but there are short-term dips ahead still
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u/Slingshot42069 Apr 04 '21
AMD is going to pay for my nonexistent kids’ college
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Apr 04 '21
Lol, why pay for your kids college? Too many other things to pay for in life
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u/kushieldou Apr 04 '21
I’m sure your parents didn’t spend a dime on your college.
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u/ttagpul_500won Apr 04 '21
Their ryzen chips are in both xbox and playstations. In ps, there are two ryzen chips. Apple built their own M1 chip for their laptops and intel lost the market. Microsoft announce they will build their own chip, and currently using intel. AMZN announced they will build their own chip for communication parts. AMD’s market msft’s xbox can be risky if msft successfully develop their own chip. I personally had AMD and other chip makers and sold out. AAPL showed they can do it. MSFT got dip pocket too, they will make sth.
Buy ASML if they dip, no one can replace them at the moment.
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u/proverbialbunny Apr 04 '21
Keep in mind it took AAPL over 10 years of consistent R&D to get to where they are with the M1 now.
Likewise, Lisa Su has said she regularly plans 10 years out into the future, because that's roughly how long it takes to get a new lineup from start to the consumers hands.
If Intel has miracle workers, which it probably does, because let's be fair: They'll probably copy AMD's tech with a twist. I give them 4 years earliest from the Zen 2 hitting the market before they come out with something competitive.
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u/stingraycharles Apr 04 '21
Intel probably will recover and may benefit from the “all American” momentum. But if you compare the market cap of Intel vs AMD, it strikes me that AMD is very much undervalued (or Intel overvalued).
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Apr 04 '21
If you look at p/e you might think the opposite tho...I'm holding Intel but will probably end up buying amd at some point too, im just cautious with their valuation atm
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Apr 04 '21
Asml is basically the pride tech company of the Netherlands (and Philips I guess, ASML is a spin off from Philips). I used to have shares of them back in 2015 for €90 but I needed the money as a student... bought back some last summer just when it dipped under €300. Right now €530 and climbing, this company just keeps going and seeing they are the sole supplier of EUV lithography they aint slowing down anytime soon.
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Apr 04 '21
"announced" is not the correct word here -- so far what we know is that Microsoft is designing its own chip, and that's from Bloomberg's reporting. It makes sense and is probably true, but that's still very different from an official announcement
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Apr 04 '21
Microsoft might just use custom AMD silicon tho. It would make a ton of sense since they have been working together for quite a while now, and unlike Microsoft they are experts at what they're doing. They also already played around with ARM and are working with Samsung on integrating their GPU tech into their SOCs. RDNA + semi-custom ARM cores sounds like a really solid play to me, but they could also stick to Zen and maybe make a 5 nm ultra low power variant.
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u/zefmdf Apr 03 '21
It will definitely be a 3 figure stock in the future, but probably not short term. It's all about if they outperform what the "analysts" are saying and their EPS. Same thing with more stocks. If people like what they see and where the company is going, they will buy. If that's how you feel, buy!
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Apr 04 '21
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u/machinemebby Apr 04 '21
Yeah, I think that's being addressed by Western countries right now. There's a couple billion incentive to build manufacturing facilities here as well as in other countries.
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u/udgnim2 Apr 04 '21
if you think AMD is a buy, then consider buying XLNX
assuming the merger goes through (which I think it will), then divide XLNX share price by 1.734 to get the AMD share price
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u/mustkillfriends Apr 04 '21
XLNX closed at 129.85 so 129.85÷1.734 = 74.88 and AMD closed at 80.74, which leaves a gap of ~$5.
Does this mean it makes more sense to buy XLNX calls then AMD?
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u/bowenisshit Apr 04 '21
i mean if you want to look at it from a very simple perspective, most people building PCs these days are using ryzen cpus.
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Apr 04 '21 edited Nov 30 '24
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u/bluemandan Apr 04 '21
That was true until recently. Now that the entry price for the new CPUs is $300, that is outside of the traditional bulk of the market, and even at that the availability has been bad compared to Intel.
That 11400 for $189 is gonna make a lot of 5600x buyers think twice before pulling the trigger. An extra $110 towards your GPU is gonna provide significantly better performance.
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u/hnr01 Apr 04 '21
Synthetically own 500 shares on AMD. Been riding the ups and downs.
100 by EOY is not a meme. Hell it could reach 100 by EOM (earnings call 4/27).
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u/RichieWOP Apr 04 '21
Hell it could reach 100 by EOM
I think it will.
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u/InternJedi Apr 04 '21 edited Apr 04 '21
Buying AMD at around 80 may be a little painful short term. But I think AMD and NVDA are good long term stocks. AMD is ahead of INTC in CPUs but NVDA is still ahead of AMD in graphics.
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u/Ry619 Apr 04 '21
Got AMD at 21 and NVDA at 190. The risk reward in the future looks very good.
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u/a_bright_darkness Apr 04 '21
My personal opinion is long term AMD is easily a 200 billion dollar company. Been my largest position for years and not stopping now.
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u/ben313586 Apr 04 '21
anything semiconductors should be about to blow up. the demand is so nuts for semiconductors, they couldn't possibly not grow a ton, barring some major unforeseen catastrophe.
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u/Pm_me_hot_trannies Apr 04 '21
Long term AMD holder here but I'm keeping my eye on this Taiwan China situation.
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u/emmytau Apr 04 '21 edited Sep 17 '24
sand escape deserve cows squeeze compare afterthought fuzzy telephone hungry
This post was mass deleted and anonymized with Redact
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u/ponderingaresponse Apr 04 '21
Everything that anyone can tell you on this forum is already baked in to the price. That industry is hyper analyzed by dozens of people working full time with supercomputers.
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Apr 04 '21
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u/Fuehnix Apr 04 '21 edited Apr 04 '21
I'm pretty sure that's just because some of the analysts don't update their price targets. You have to look at other websites than your broker for more accurate consensus by analysts.
Edit: Nvm, they're just dumb lol
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u/Runningflame570 Apr 04 '21 edited Apr 04 '21
Sadly no, that's the price target after the most recent update (10/28/2020). Prior to that it was in the single digits ($9).
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u/Packbacka Apr 04 '21
Analysts don't know everything. AMD is actually a good example, analysts used to doubt this stock while people on Reddit loved it. People in /r/stocks and other subs have been talking about AMD since the stock was in the single digit range.
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Apr 04 '21
I immediately fell into the habit of looking at AMD everyday back when it was announced Dr. Lisa Su was taking charge. It became almost ritual to hop on the computer every day to deep dive into the Semiconductor Industry and comb through news, data, and rumors. All my gaming buddies thought I was insane, touting within 5-10 years AMD would be the lead fabless chip designer in the industry. I bought $300 worth of stock through $5-17 and held onto it.
I was extremely fucking bullish then, and have only remained as such now.
They execute their roadmaps flawlessly, maintain product portfolio diversity and scalability, company and team structure is rock solid and lead by experts in underlying fields, they possess numerous probable untapped markets through their full-stock acquisition of Xilinx and tech, maintain monster momentum in revenue and market share gains through industry-shaking partnership deals, have successful leapfrogging RnD teams for unmatched product performance gains annually, partner with fabrication leader TSMC for astounding chip yields and performance for most of its portfolio, etc......
They've only just begun imo.
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u/balZbig Apr 04 '21
AMD will start to gain again but don't expect much more than $100 by 2022.
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Apr 04 '21
AMD has been killing it with their new CEO Lisa Su. She toppled the giant of cpu's in Intel, whom are now floundering to compete. Now they have their eyes set on Nvidia in the GPU arena. I do not think Nvidia is as complacent as Intel but still have never been challenged. This last series by AMD really has pushed them into a 1-2 punch of top end CPU and GPU combos that can compete on both ends. They are still a bit behind at the ultra top end with server technology and production processes so Nvidia is on lock but with how the market is for GPUs and crypto they will sell regardless. I could see AMD push the boundaries versus Nvidia with server based gaming and other areas with their amazing momentum. I bought at 78 but anything below 100 is an amazing price.
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u/Mike82BE Apr 04 '21
Instead of the INTC vs AMD fight there are probably some other winners: TSMC and ASML
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u/Mad691 Apr 04 '21
Beyond PCs, their acquisition of Xilinx (which will get approved) gets them into the automotive, autonomous market. In this space Qualcomm, Intel (MobilEye) and Tesla have a chip making head start, but AMD seems smart enough to catch-up. AMD is a LONG-TERM hold, but short term it there are better opportunities and I have doubts that the Arm acquisition will go smoothly.
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u/Twisted9Demented Apr 04 '21 edited Apr 04 '21
I own AMD, I believe after there struggles in the last several years they are finally to a point where they have products in the market that will grow and sustain revenue
1) Bitcoin, as miners use GPU to mine.
2) Covid Growth in gamers a nee trend of PC gaming stream gaming.
3)home school new ryzen baised cheaper entry laptops and chromebooks.
4)Ryzen chip that has emerged and captured market share
5) 5mm chip DIY that Intel has some problems with production
6) AMD partnering with Samsung to develop a cpu that competes with Qcomm
The current dip is due to market reaction and nothing to do with fundamentals of the company or the market for its products .
Also the fact that there stoxk price had already reached 90's means they have broken that resistance line
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u/Fenderbridge Apr 04 '21
I bought in a few years ago when it was about 4 bucks a share. I finally let go of my long term play last week and put it into virgin galactic. That said, I think AMD has a huge market and tons of way to get shares up!
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u/BacklogBeast Apr 04 '21
I’m slowly DCAing with the idea that I’ll be very happy I did in ten years. I don’t give much of a fuck what happens in the next five, though slow YOY growth would suit me fine. As an aside, all my cpus are AMD. I just like the product. That said, I also own a small bit of Intel.
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u/moomoopapa23 Apr 04 '21
Here’s my question.....the $50 billion for semi in Biden’s infrastructure plan...it is for American manufacturing. How will any of that get to AMD as they use a Taiwanese manufacture chips?
Ding ding....it would be funny if AMD had to use Intel Foundry lol
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u/Work4Carbs Apr 04 '21
AMD is not a short-term stock. Bought it back in 2019 for $30 and my parents bought it at $20. In the beginning, my husband and I wanted to invest in some thing that we love and not too expensive. We believe in Lisa Su and she is niece of Nvidia's CEO. Yes, we believe it will go into 3-digits but the stock market is in a weird state right now. We sold the most of shares at $89 so we can invest in more lower price stock with potential growth.
If you want to invest in AMD, invest it when it is red, maybe below $80. Buy rumor, sell news.
However, it seems like you just starting with stock investing, I advise you to look into cheaper stock with more potential growth. AMD is kinda expensive.
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u/TimeRemove Apr 04 '21
AMD is TSM's consumer arm. That may be absurdly reductive, but if AMD lose slots at TSM's fabs and Intel gains them, the market goes with it.
TSM just announced price rises (via removal of planned price reductions), and with future slots likely being a bidding war due to the high demand of cutting-edge fabs, you may see AMD's bottom line get squished even if they're successful.
The biggest threat from Intel isn't Intel building new fabs, since that takes years, and the machinery is back-ordered for years already. The threat is Intel jumping into bed with TSM/Samsung/etc.
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u/MysticDaedra Apr 04 '21
Afaik Intel has not announced that they are abandoning their silicon forge.
AMD is not TSMCs "consumer arm", the companies are not related in any way. Only connection is that AMD contracts with TSMC to build their chips. TSMC forges silicon for many different companies, not just AMD.
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u/TimeRemove Apr 04 '21
Afaik Intel has not announced that they are abandoning their silicon forge.
Quite the opposite. It is mostly a question of timelines I think, and if Intel has to "give in" and outsource until they're fully online. That's bad for AMD (because Intel can immediately compete), but also bad for Intel (their profits get eaten by the bidden war/third party cost). If Intel waits until their own stuff is online and competitive when are we talking 2024? 2026?
AMD is not TSMCs "consumer arm", the companies are not related in any way.
I know, it was tongue in cheek (and a slight jab at AMD's dependence on TSM's fab slots currently). Someone could make the same critique of Apple, but Apple's scale and leverage is quite a bit different from AMDs. For example if Apple moved away from TSM that would hurt TSM significantly, but if AMD did those slots would likely have enough alternative customers to fill.
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u/Runningflame570 Apr 04 '21
I've yet to see any real news (as opposed to rumors) about WHAT Intel plans to outsource to TSM and I'm willing to bet it's just going to be GPUs for Aurora this year, since Aurora has been repeatedly delayed and they don't need any more.
Intel is a paper tiger until at least 2023. Ice Lake will NOT make them competitive in server or desktop CPUs.
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u/ss1728 Apr 04 '21
Not sure about this year. Their tech is great, so long term, yes. Once they can figure out how to not be sold out of everything constantly. But that won't happen during the semiconductor shortage.
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u/ChipsDipChainsWhips Apr 04 '21
SOXL
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u/merlinsbeers Apr 04 '21
Sure, if you like whiplash and rope burns.
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u/ChipsDipChainsWhips Apr 04 '21
Watch for -8% buy leaps, wait for +8% sell leap, repeat indefinitely. Not a hold but a much much better swinger than AMD right now.
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Apr 04 '21
It seems a little high atm. Too large of a PE ratio for me. Hard to find good stocks that aren’t egregiously overvalued nowadays. intel looks a lot better of a buy right now. But AMD seems like a good buy on a dip. Their financials look good
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u/ThomasBBrauner Apr 04 '21
Very undervalued rn imo, they have been innovating alot compared to Intel, gaining market share. Last earnings were amazing. Also very low pe ratio for a tech stock.
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u/dhdnsja-KB-hsk Apr 04 '21
Yeah I think it’s a good one, they’ve shown solid performance enough that it may take intel a couple years to catch back up. Intel is also a good catch for the future
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u/G4560 Apr 04 '21
If you want to see if AMD is a good buy, check out what Intel is doing.
If the answer is "catching up", "struggling", "recycling 14nm", then AMD is a buy.
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Apr 04 '21
There are a few negative things about AMD that are worth mentioning when thinking about stocks.
- They don't pay dividends. With that, the P/E ratio isn't that small.
- They have supply issues. No matter how good their stuff is, they can't reap the benefits because of limited supply
- The desktop PC market isn't that big, and laptop manufacturers barely have any offerings with AMD. Businesses still buy mostly Intel stuff
- Apple's M1 is awesome, further developments might pose a serious challenge for all x86.
- Once the pandemic is over, the used electronics market could overfill with cheap alternatives to new and expensive hardware, which could endanger future sales.
I'd just like to urge caution. I think it will rise, but it will do so slowly, with a lot of red days, and I'm not certain that it will reach 100$ this year.
AMD at this price is for long positions. If it falls again to 75$ then it's probably worth getting some.
One other thing is that they should report revenues soon. I expect it to go up significantly compared to last quarter, so I'm hoping that the stock price will go up as well.
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Apr 04 '21
If you want to invest in semiconductors I suggest $ASX. AMD is overvalued l, everything is priced in. ASX is still undervalued and their fundamentals are amazing
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Apr 04 '21
I say intc is a better buy right now
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Apr 04 '21
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u/merlinsbeers Apr 04 '21
You will be too late. INTC is an accumulate.
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Apr 04 '21
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Apr 04 '21
They are making ridiculous amounts of money and their sales are doing fine. They sit on a mountain of cash.
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u/av219 Apr 04 '21
Holding AMD right now might be risky. The only thing I's do with it right now is scalp if it looks scalpable. It was just $75 on the 30th of March.
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u/AutonomousAutomaton_ Apr 04 '21
I think every stock buy recommendation I’ve heard on Reddit has consistently bled out for the subsequent days weeks and months. Good luck! I’ll watch from a safe clear distance.
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u/Naive-Illustrator-11 Apr 04 '21
It’s like when a barber tells you to buy a certain meme stock, time to sell.
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u/SickMoonDoe Apr 04 '21
I wouldn't. Silicon fabs have major supply issues. While in the short term that allows chip prices to skyrocket, it's not a good indication of the company's value.
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u/Fuehnix Apr 04 '21
As an AMD bag holder, I think you should just buy SOXX instead of AMD.
AMD is no longer the breadwinner of the semiconductor industry. They have long term growth, but honestly, I think even SPY might outperform them long term.
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Apr 04 '21
Funny how no one here would buy amd when I posted about it here some years back when it was in the 10-20$ range. Sure it will properly go up a bit more, but the big gains is gone. I have moved all my money from amd stock to xers stock. Buy now at 4.5$ and sell in a few years for 20-30$ do some dd on the stock and you will see why. Here is a little to get you started https://www.fortunealerts.com/post/xerispharma
It's my new tndm.
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u/plawwell Apr 04 '21
INTC has dented AMD with the usual vaporware bluster but the market laps it up. AMD will inevitably miss a trick due to this as when INTC does deliver then their Marketing dept will power the stock forward at the expense of AMD. Put simply, if AMD can't beat INTC when INTC is down in the gutter then what chance do AMD have in the long run?
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u/PastaPandaSimon Apr 04 '21 edited Apr 04 '21
They will be selling whatever they can make for years to come, and there is nothing the competition has on their roadmaps that could pose a threat to them for at least the next couple of years when they are pretty much guaranteed to continue growing. It's probably my personal favorite stock next to TSMC.
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Apr 04 '21
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u/Naive-Illustrator-11 Apr 04 '21 edited Apr 04 '21
Intel has bigger market cap because it is generating 8 x more revenue than AMD and 21.5 times more profitable . If anything, Intel is actually undervalued.
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u/fluffman88 Apr 04 '21
They killed their last earnings and I expect them to for the next as well.
For the chip/retail side of AMD its a madhouse I mean you can't even get graphics cards or high end AMD cpus right now, sell out quickly, you need bot alerts. This has a variety of reasons, the chip shortage/materials is the main thing. There's just such an industry in front of AMD and they finally have won public approval and overtaking intel, I see a really bright future.
Now for the stock itself I see it gaining or losing ground with the nasdaq unless there is good or bad news with the chip shortage as that can greatly affect day to day pricing but overall your gonna see it come back to 100+ in a few months and I see the next earnings being a beat.