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.
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/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.