I've circled the years in red in which earnings were negative compared to the previous year. The dark green shaded area in the FAST Graph above represents AMD's historical earnings per share. The reason I do this is because I want to know if this is a stock that fits the profile of a stock I would consider investing in, and also I want to know which strategy and techniques are the most appropriate to analyze the stock in question. The first thing I check for every stock I analyze is to see what its historical earnings cyclicality looks like. The real question is when will AMD stock be cheap enough to buy so that the investor has a high probability of producing above-average returns over the medium-term of 2-5 years? And that is what I will explore in this article. My hope is that this poor performance is enough for AMD shareholders to realize that AMD's general quality as a business is not the primary issue they need to worry about, and even high-quality semiconductor stocks are subject to very big swings and stock price volatility. Furthermore, just about everyone who bought AMD during the past two years is now roughly flat, or down, on their investment. For example, AMD's business is just as good now as it was in December of last year (perhaps even better), but that doesn't explain this price performance of the stock:ĪMD is currently more than 50% off its highs, while QQQ is down half that amount and the S&P 500 ETF ( SPY) is only down 17% off its high, all of which were made about the same time in late 2021. So that's not the main thing I will be examining. My assumption in this article is that most readers will generally agree that the quality of the business is good. The difficulty is determining what price to pay so that there is a high probability of producing above-average returns. However, I think the time has come to start giving AMD the benefit of the doubt in terms of the general quality and competitiveness of their business, and, because of the improvement in their business, they need to be considered as part of any investor's potential semiconductor exposure. As I'll show in the article, AMD stock's long-term historical track record has been inconsistent and difficult to predict. This will be the first article I've written on Advanced Micro Devices ( NASDAQ: NASDAQ: AMD). It reached its all-time high of $48.50 per share in 2000, and its all time low in 2015 at $1.61.Surendra Sharma/iStock via Getty Images Introduction The spun off company, GlobalFoundries, would allow AMD to focus exclusively on its chip design.ĪMD split its stock several times over the history of the company. The company spun off its manufacturing division in a joint venture with the government of Abu Dhabi in 2008. In 1984, after the company had decided to enter a joint technology exchange with Intel primarily to produce its rival’s x86 chips, the company landed in the Fortune 500 for the first time.ĪMD bought ATI Technologies in 2006 for $5.4 billion in order to expand its graphics card capabilities. In 1977, Siemens bought 20% of AMD’s outstanding shares in order to increase its American microprocessor footprint, but sold the shares back to AMD just two years later. AMD moved to the New York Stock Exchange in 1979, and to the Nasdaq Stock Exchange in 2015. It raised $7.5 million in its initial, over the counter public offering. AMD issued 620,000 shares of common stock for $15.50 per share, equivalent to $0.57 adjusted for the 27:1 spilt over the lifetime of the stock. The company went public in September of 1972.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |