Investing in AMD
But here the real question is: Will investing in AMD really be a good opportunity to generate income? That’s what we will find out in this post, as we will analyze everything about the company, its most interesting facts, pros, cons and of course we will show you how to buy in AMD.
What is AMD?
It is a company located in California, United States that produces various technological products. At the beginning they only developed microchips and a few years later they started with RAM memories. Today they have added other components to their business, such as: microprocessors, embedded processors, personal computers, the popular gamer computers and laptops, applications, graphics processors and much more.
This company is one of the largest developers of graphics processors and is the second largest distributor of x86 architecture microprocessors.
AMD is known for developing high quality components with durable materials, but without the need for high cost. In the case of the different software it offers, they are totally safe, save electrical energy and can be configured to take full advantage of its graphics cards.
Why buy AMD stock?
AMD’s stock price is listed within many exchanges globally, most of its sales are executed within the United States and China. As of 2017, the company has a revenue summation that exceeded ten million dollars.
They currently exceed 6 trillion US dollars and hold a total of one trillion AMD shares. They are comprised of the largest investment groups, such as Vanguard and Blackrock. They have a very strong shareholding, which means that professional investors in the United States are betting on AMD.
According to experts, AMD stock has had very sharp swings over the last 50 years. It has had 4 periods where they have gone up as much as 1000% and three occasions where they have gone down 90%, which is nothing compared to the rises.
All of the above makes it impossible to calculate the exact time to invest in AMD stock in the stock market. Although if this keeps repeating itself there is no other piece of information that would make you hesitate to buy an AMD stock.
Buying AMD Shares: Advantages
- It is quite a desirable stock: since 2017 AMD has been among the top stocks on Nasdaq. This makes the value of AMD stock grow more and more.
- It has contracts with excellent suppliers: it develops PC components and this is the most important thing, since this way it enjoys materials made with the highest quality and without increasing the cost of the same.
- This new era of digitalization is good for you: Due to the covid-19 pandemic, it is now necessary to acquire technological equipment to study or work from home.
- AMD has managed to adapt to the needs of the general public: Thanks to the constant mergers it has acquired, it has managed to develop products in different categories.
- It is based on an automated business model: It aims to offer the best performance in each of its products, which causes the generation of new revenues. In addition, it automates its activities to innovate the quality and thus increase the manufacturing of its merchandise according to market demand.
- It has a great vendor community: AMD specializes in demonstrating a great company culture to its vendors, which helps them to highlight each of the products.
Buying AMD Shares: Disadvantages
- Sometimes their financial planning is not as adequate: The rate of return and net contribution margin is lower than those of their competitors, which can gradually affect the price of AMD shares.
- The price of AMD stock is higher than that of its competitors: The value of a share of its strongest competitor, Intel, is almost $50. In contrast, the value of an AMD stock almost reaches the price of 90 dollars.
- This company makes a low investment in research and development: Compared to other companies in the area, AMD does not invest as much as it should. Because it focuses more on manufacturing products that already exist in the market, AMD does not invest as much as it should.
- Great variety and number of competitors: We have already noted that Intel is AMD’s direct competitor, and although there are other companies such as Zhaoxin KaiXian for example, let’s say that their battle is with Intel.
Now that you know how much an AMD stock is worth, it’s time for us to explain the easiest way to invest in AMD stocks. How to do it? By hiring a stock broker that allows us not only to buy it, but also to hold a stock for the long term.
There are brokers that sell and buy in the Latin American, European or even international market. Each one has a minimum amount to invest, the choice is yours. The best known are: Degiro, eToro, Plus500, XTB, among others.
Below, we will explain step by step how to invest in AMD through the Degiro broker:
- In case you do not have an account with Degiro, you must register by filling in the form with the required data.
- Then log in.
- Now search for AMD shares in the search bar located at the top of the screen.
- When searching, a pop-up window will appear with the possible results, click on AMD, Inc. This will direct you to a screen that shows all the stock’s stock data.
- Click on the Buy now button, then a pop-up window will appear with the full description of the AMD shares.
- On the left side of the window select the type of investment you wish to make, the amount to pay, the number of shares to buy and the day to cancel it.
- Click on the Place order button, then confirm the order by pressing the green button and within minutes you will have the AMD shares in your account!
- Study everything related to stock investment: For some this activity may be something new, so it is advisable to start studying all the terminology of the area. As well as the types of stock investments that exist.
- Set a budget: Start by investing a small amount of money, taking into account the amount you can afford to lose. After earning income you could consider buying one AMD share or several if you wish.