Should You Invest in AMD?

PHOTO CREDIT: AMD

OVERVIEW

Advanced Micro Devices Incorporation is a semiconductor company based in the United States. It makes the bulk of its revenues through the sales of graphics chips and cards under the Ryzen, Radeon, A-Series, and many more. These chips are found in computers, video games, and many other devices. They make stronger chips for data centers and servers around the world as well.

Why You Should?

  1. The COVID-19 Pandemic has boosted the company’s sales of its graphics chips and graphics cards as consumers all around the world purchase computers, PC’s, and video games during these times. This has benefited AMD’s financial results which have caused the stock price to rise.
PHOTO CREDIT: Yahoo Finance

Why You Should Not?

  1. AMD faces tough competition from several large companies, especially NVIDIA, who offers directly competing products to the ones that AMD offers. This competition along with competition from companies like Intel and Taiwan Semiconductors. This competition might hurt AMD in the future.

MY OPINION

In my opinion, I think that AMD is a great long-term investment due to growth from the COVID-19 Pandemic, strong growth through M&A, having a market share in some of the world’s most valuable industries, and more. However, competition and valuation might hurt the company’s stock price in the future.