AMD stock is a very interesting stock if you want to invest in the technology sector with a particularly strong past performance.
How much can you make with AMD stock?
Get up-to-date and precise information on AMD stock with its current price, dividend yield, analysis and our opinion.
This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.
Want to buy shares in AMD: Our key take-aways
Stock exchange: Nasdaq
- Stock index: Nasdaq 100
- Dividend 2021: $0
- Dividend forecast 2022: $0
- Performance over 1 year: +32.84%
Should I buy AMD stock?
AMD is still a recommended stock if you are considering a medium to long-term growth strategy.
The stock has indeed performed very well with a rise of more than 300% in only 3 years and more than 600% in 5 years.
Although the group does not pay any dividends to its shareholders, this stock can be considered for a capital gain in a few years if the analysts' consensus, which predicts an increase in its stock market value.
Learn all about stocks and get investing advice online from The Motley Fool.
Investment recommendations and the best stock picks from The Motley Fool Stock Advisor
How can I buy shares in AMD ?
To buy AMD on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add AMD to your stock portfolio.
How much are AMD shares?
See price chart below to follow AMD stock price in real time.
Ready to invest in AMD? Shop for through Qtrade.
Why AMD shares could go up:
Currently and in view of the economic and sectoral situation of the AMD group, several elements lean in favour of a rise in the price of this stock in the more or less long-term, including
- A strong brand image: the AMD group benefits from a strong brand image and great popularity on the microprocessor and PC market. This allows it to attract more customers.
- Significant investment in innovation: The group also invests heavily in research and development and regularly develops innovative products in order to stand out from the competition.
- International presence: AMD has a strong international presence and markets its products around the world, which reduces the risk of localized economic downturns.
- High barriers to entry: in certain specific segments, AMD faces little competition. In the graphics processing unit segment, its only serious competitor is NVidia, and in the microprocessor market, its only opponent is Intel.
- A growing market: the semiconductor market is currently booming with strong demand from the automotive sector in particular, from which AMD could benefit in the long-term.
- Strong partnerships: Finally, the company regularly establishes strong and long-lasting partnerships with major companies, which allows it to generate long-term revenue.
Why AMD shares could go down:
Of course, some other elements are rather in favour of a decrease of the price of this value and we will retain in particular the following elements:
- Declining sales: for the past few years, the group's performance in the computer segment has been slightly down due to the rise of tablets and handheld computers.
- A weak presence in the mobile segment: unlike some of its direct competitors, AMD has only a weak presence in the mobile segment.
- Strong competition: In some markets, AMD faces particularly aggressive competition, making it more difficult to gain market share.
- Strong competition: AMD faces two major competitors in this sector, NVidia and Intel.
- Restrictive regulations: the group's activities are also hampered by increasingly strict environmental regulations that limit its growth.
- Lack of dividend: although AMD is profitable, it does not pay any dividend to its shareholders for the moment, which can make this stock less attractive for investors looking for yield.
Can I buy AMD stock online?
Yes! You can buy AMD shares online. For many buys this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my AMD shares?
In Canada, you will only be able to sell AMD shares with a registered vehicle if you actually own them and simply place a stock order online. If you do not own the stock and anticipate a decline in its value, you can:
- Practice short selling with a margin account.
- Use derivatives such as CFDs or options.
What investment vehicles in Canada can hold AMD stock?
AMD shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
To buy AMD shares, simply register with an online broker and place a buy order for the number of units you want to add to your portfolio.
You can also invest in a technology index or a basket of stocks in that sector using an ETF or exchange-traded fund or a mutual fund.
AMD share price history over 10 years:
AMD dividends and payment dates
In 2021, the AMD Group did not pay any dividend to its shareholders.
In fact, since its entry on the stock market, the company has never paid its shareholders.
This is due to the growth policy implemented by the group, which has chosen to reinvest a major part of its profits in investment in order to gain market share and increase its profitability.
Although AMD has not announced a dividend for 2022 or for the following years, it is possible that it will one day pay a dividend to its shareholders.
What is the dividend yield for AMD over the last 10 years?
The yield on AMD shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about AMD stock:
A critical analysis of AMD stock:
Fundamental analysis of AMD shows interesting and bullish signals in the medium and long-term, including:
- Strong growth potential: analysts expect revenue to increase in the coming years, with growth of up to 98% by 2024.
- High margins: with a strong EBITDA/Sales ratio, we see high margins before depreciation, amortization and taxes. The company's margins are among the highest in the market.
- A solid financial position: the company's financial position appears to be particularly solid with a strong capacity for investment.
- Upwardly revised forecasts: In recent months, analysts' expectations for revenue and earnings per share have been revised upward.
- A high price target: The average analysts' price target is quite far from the current price, which suggests a significant increase in AMD stock. This price target has been revised upwards several times recently.
- Good visibility on future business: Visibility on the group's future business is excellent and the analysts who cover the case have consistent views on the company's future revenue.
- Better-than-expected earnings releases: Historically, the company has generally delivered better-than-expected results.
- High earnings multiples: with a P/E of 30.33 times earnings, the company is trading at particularly high multiples. The company thus appears to be particularly valued in relation to its balance sheet.
A technical analysis of AMD stock:
The signals from the technical analysis of AMD stock are particularly encouraging and positive from a long-term perspective with the following indicators:
- The RSI is currently at 55.579, which sends a strong buy signal on this stock.
- The short and medium-term stochastics are neutral and the long-term stochastic is currently oversold.
- The MACD is moving at 18.56, which is another interesting buy signal.
- The MA5 and MA10 simple and exponential moving averages are sending a sell signal. All other moving averages are sending a buy signal.
- The next technical support levels are at 97.76 and 86.19 and the next technical resistances are at 123.25 and 137.17.
Who is AMD?
The AMD group or Advanced Micro Devices Inc is an American company in the computer and electronic components sector. It specializes in the design, development, manufacture and sale of semiconductors and microprocessors.
The group offers various products such as processors, chips, cards, connection products, adapters and others for computers, servers, workstations, telephones and game consoles.
The group's sales can be broken down as follows:
- Graphics products with 56.8% of sales
- Professional IT products with 43.2% of sales
The geographical distribution of AMD's revenue is as follows:
- The United States with 28.3% of revenue
- China with 24.9% of revenue
- Japan with 14.5% of revenue
- Taiwan with 12.7% of revenue
- Singapore with 8.5% of revenue
- Europe with 7.6% of sales
- The rest of the world with 3.5% of sales
Who are AMD’s competitors?
The AMD Group operates in a highly competitive industry, so you need to be aware of its main rivals. Currently, the main competitors of the group are:
- Intel Corporation: this American company is the second largest manufacturer of semiconductors in the world in terms of turnover. It produces microprocessors, motherboards, flash memory and graphics processors.
- NVidia Corporation: This American company specializes in the design of graphics processors, graphics cards and graphics chips for PCs and game consoles.
- Samsung Electronics: This Korean company specializes in the manufacture of electronic products and components and is a wholly-owned subsidiary of the Samsung group. It is also one of the largest high-tech companies in the world.
- Taiwan Semiconductor Manufacturing Company: also known as TSMC, this company produces semiconductors for Apple, NVidia and Qualcomm.
- Broadcom Corporation: this American company is also active in the electronics industry and develops semiconductors for various telecommunication equipment.
- Qualcomm: this American company is active in the mobile technology sector and particularly in the design and implementation of telecommunications solutions. It is one of the world leaders in cell phone processors.
- Texas Instruments: Finally, this American company is specialized in passive electronic components and semiconductors. It offers microcontrollers, processors, sensors, wireless connectivity and scientific calculators.
Who are AMD’s partners?
The AMD group regularly sets up strategic partnerships with other companies, in order to boost its sales or improve its innovation. Here are its most recent partners:
- HP: recently, the group has set up a partnership with HP in order to equip the computers of the brand with its processors.
- MediaTek: this other company has created a joint venture with AMD in order to offer processors with WiFi 6 from MediaTek and new AMD chips powered by 5G from 2024.
- Eyeware Tech SA: The company announced a collaboration with AMD to provide computer vision algorithms and artificial intelligence technology for automatic perception.
- Mercedes: A partnership has also been established with the Mercedes Formula 1 team as a sponsor. AMD's logo has appeared on the cockpit of the manufacturer's new single-seater, the W11.
- Microsoft: Finally, the group is also a long-time partner of the giant Microsoft, with whom it has collaborated on the Microsoft Azure NV4 virtual machines, which are available to customers in South Central US, East US and Western European regions.