INVESTING IN AMD STOCK 📈 Is Advanced Micro Devices A Buy? (UPDATE)

Is AMD stock a buy? I invested in 500 shares of AMD stock a few months back. I am constantly getting comments about AMD stock and whether or not I still think it is a buy. Today, I will be doing an update video on AMD and going over the pros and the cons of this stock. AMD has climbed from $1.83 a share in February 2016 to a high of $15.20 a share in February 2017. The Ryzen 7 and Ryzen 5 CPU’s have been released, and the Ryzen 3 CPU as well as the Vega GPU are going to be released in Q2 2017. Recently, we have seen a pullback in AMD stock as it fell below the 50 day simple moving average after the bearish Goldman Sachs call. Should investors buy the dip, hold their positions or sell? Pros of Advanced Micro Devices 1. Ryzen CPU Launch The long awaited Ryzen CPU has been launched. The next quarter will be the first quarter showing revenue from the new hardware line. Ryzen has close to a 50% price advantage over the competitor Intel in the high end CPU market. This gives AMD a fighting chance of regaining market share. The Ryzen launch was lukewarm, as performance issues impacted operations with Windows 10 and gameplay performance lagged. An upgrade to the chip resulted in a 21% gameplay performance improvement. If Ryzen gains market share and AMD turns a profit, the stock will likely soar. 2. Potential for a Short Squeeze As of March 31st, short interest on AMD stock is 111,319,217 shares. That is a short interest of 12%, meaning 12% of investors are bearish or betting on the stock to go down in value. Short interest on AMD has been climbing due to the rally over the last 15 months. The short interest positions held by bears will fuel the rally of the stock if all goes well. If Ryzen is a hit, and AMD turns a profit on upcoming earnings reports the stock will likely gap open on this news triggering an explosive bullish price move as bears scramble to cover short positions. 3. AMD is back on the S&P 500 The S&P 500 index officially added AMD to its 500 member companies in March of this year. This is a bullish sign for the stock. AMD was removed from the S&P 500 back in 2013 due to declining market capitalization. With Vanguard alone, there is approximately $1 Trillion invested in funds tracking the S&P 500 index. Due to the newfound index status, AMD is receiving backing along with the other S&P 500 linked assets. Passive index investors are allocating millions in AMD stock, be it directly or indirectly. Cons of Advanced Micro Devices 1. Bearish Goldman Sachs Call AMD stock was trading around $14.50 a share. Goldman Sachs initiated a sell rating, resulting in the recent dip in the stock price. Goldman analysts believe AMD is priced for perfection and that the rally cannot be sustained. Many of us, including analysts at Barron’s, disagree entirely with the bearish call on AMD by Goldman. Nonetheless, this has changed the overall investor sentiment of the stock. 2. AMD might be Overvalued We can all agree that AMD stock was severely undervalued when it fell below $5 a share. However, AMD may have climbed to the other end of the spectrum to where it may be overvalued now. AMD has not turned a net profit since 2011. Their peak earnings per share was $0.66 this century. Currently, AMD stock is valued around $15 a share on the upper end. If they match their record earnings per share, that is a price to earnings ratio of 23. AMD stock is also diluted. Ten years ago, they had 547 million shares outstanding. Today, they have 941 million shares outstanding. 3. Intel likely has Wiggle Room Intel is dominating the CPU market and AMD is experiencing a competitive improvement. Intel has had no competition as AMD fell out of favor. Intel was able to name their price. If AMD becomes a threat to Intel, they will likely lower their prices to compete with AMD. The main problem with AMD is that they have been in a perpetual state of catching up to Intel. The next generation of CPU architecture from Intel will likely allow them to regain a lead on AMD. Is this rally for AMD temporary? These are the major pros and cons of AMD stock. Many investors have already made serious gains on this stock, and I believe there is still room for this stock to grow. I am holding my position of AMD stock that I picked up at a share price of $12.06 a share. I am bullish on AMD. Website http://www.ryanoscribner.com Follow me on Twitter! https://twitter.com/RyanOScribner Facebook! https://www.facebook.com/ryanoscribner/ Personal Fitness Coaching http://www.ryanoscribner.com/shop Related Articles: AMD: Stay the Course (Barron's Response to Goldman) http://blogs.barrons.com/techtraderdaily/2017/04/06/amd-stay-the-course/ Goldman Sachs Sell Call https://www.streetinsider.com/Analyst+Comments/Goldman+Sachs+Starts+AMD+(AMD)+at+Sell/12752325.html

Comments

1. one thing you didn't mention was about Naples their server CPU that's supposed to come out soon. the server Market is a much bigger Market and what we're seeing so far it looks like it's going to be a pretty good competition to Intel.
2. no mention of AMD Naples cpus? the server cpu market is huge.
3. We haven't heard anything about server chips. That's the largest amount of business they have lost in recent years. Simply put, if AMD shows signs of new server chips that match or best the intel chips then they would definitely be worth giving some change. AMD only holds about 1% of the server market so the room to grow is huge. Keep an eye out for AMD news
4. congrats on 5k!
5. Goldmann Sachs and George Soros are disasters.
6. That nukacola poster is cool
7. the enthusiasts are the only people who are excited
8. sub'd , very informative! could you do video about weed stocks? TNY, PURA, EAT , Canopy growth, Aphria etc. Seem to have lot of hype and could bring you lot of viewers as well !!
9. AMD are having awesome innovation! Even though they got mixed reviews on Ryzen7 launch, what was considered "bad" in gaming wasnt even that bad as they made it seem to be considering the spankin new platform.. lots got fixed with bios update and optomization in only a month, i have never seen AMD having such integrity in a long time, not to mention their multithreading performance is simply awesome compared to Intel right now, especially for the price.. Zen is a fantastic architecture that will only get better. I can imagine Naples servers CPU being a huge succes, only thing im worried is Vega can very well be a Huge hit or miss right now. Some speculation suggest they might be using some parts of Zen architecture in Vega. We shall see. But theres no doubt AMD are stepping their game up.
10. intel probably paid goldman to give bad info so people sold off AMD stock, Intel has been known and practice this since the early 2000 by paying benchmark software company to make their cpu have better score than AMD, Intel has been sued numerous time on different occasion its not a surprise if Intel trying to butt in, you can google it Intel does shady stuff to control the market
11. what if you set up a patreon page where we can chat with you directly on a specific stock we're curious about buying?
12. AMD makes more then CPUs. They make graphic cards too (GPU). They are going to release new faster cards using VEGA 10 and VEGA 11 chips to compete with NVIDIA's 1080 lines of cards. If the cards are just as fast and cheaper then NVIDIA's cards for similar performance they can regain market share there. They could be looking at a big 2nd half of the year.
13. Interesting, wish I had money to invest =).
14. Hah cashing in on the AMD hype I see Ryan. Another great video. Don't have a position on AMD and feel like I'm too late. Going to stay out.
15. @Ryan Scribner Don't forget Intel will be using amd graphics chips in they're upcoming processors
16. And I can definitely say that AMD has not had as compelling product in the CPU market in this decade as Ryzen... So AMD should be valued accordingly. Once earnings are released I expect major run up as shorts flee and more investors jump on the stock.
17. You may wanna pay attention to this analysis: https://www.linkedin.com/pulse/amd-expanations-short-term-price-targets-kenneth-m-luskin?published=t
    
    https://www.linkedin.com/pulse/amd-new-zen-cpusapus-least-10-market-share-servers-pcs-luskin?published=u
    
    He started updating this LinkedIN thread/article when AMD was $3.5. So far he's been correct. I would urge anyone to pay close attention what he has to say in his articles.
18. Hahaha this was just usual stock manipulation from Goldman Sachs. I would bet they are buying AMD when they told their clients to sell it... Look where Tesla is now, GS downgraded it in November when it was $180 and now its $305 or so... Never listen to Goldman Sachs they are known to manipulate stocks and they get always away with it. They created a good buy opportunity here just before AMD earnings in May 1st. I bet it will be going lot higher once the earnings and next quarter earnings forecasts are released...
19. I recommend to forget about technical analysis and just look at the raw facts. AMD is now producing much more competitive chips at a much higher price point (compared to the previous lineup) on smaller dies to get more chips from one wafer. Hence production cost go down while the higher price point, which in some cases is still 50% lower than Intel for the same performance, widens the net profit span. Thanks to the manipulation by GS we all have an entrance opportunity just a few days before there Q1 earnings report at a significantly lower price point. This is excellent times to invest or extend an existing investment. If NVidia is at (insane) 100USD then both Intel at 35 and AMD at 12 are cheap stocks.