AMD is one of the premier semiconductor companies in the world and has been around since the late 1960s. Since its inception, AMD has been a pioneer in CPU and GPU technologies, releasing new products each year to commercial and consumer markets alike.
For most personal computers, buying a CPU is usually a decision between AMD or its competitor, Intel. Regardless of which side of the “CPU wars” you may find yourself on, AMD is a company that most people would consider to be a good investment.
Today, we are going to take a look at AMD, particularly its stock price, to see what we can learn. Let’s get started!
How Much is AMD Stock Right Now?
Currently, AMD’s stock price is around $70 and has remained relatively consistent over the past month. Still, this price is likely to change in the coming weeks as we near earnings reports and market shifts become more crystalized.
AMD hasn’t had a great year, although the company’s price seems like it’s held somewhat steadily over the past few weeks. Let’s take a look at some of the trends we are seeing in the market and how they apply to AMD specifically.
A Rough Year for AMD
As a company, AMD has had a rather successful couple of years, at least since 2018. AMD produces microprocessors, making them one of the most in-demand companies for a world that had trended digitally and will likely continue to do so. Alongside most of the other large tech companies in the world, AMD has experienced astronomical growth over the past few years, despite COVID restrictions beginning back in 2019.
In fact, AMD started 2018 at around $11 a share and ended at an ATH (all-time high) of around $155 in November of 2021.
Generally, companies don’t experience 1310% increases in value over only three years, but that seemed to be the trend for large tech companies during that season. For AMD, specifically, an increased need for computers in a new “work from home” era and an increased demand across markets like crypto and gaming resulted in massive margins and profitable years.
As it happens, however, that absolutely wild growth couldn’t be sustained forever. In late November of 2021, the market began to seriously cool. Consumer spending dropped, the feds began to hike interest rates, and people suddenly weren’t in the market to buy brand-new computers with the fear of a global recession looming ahead.
As we would expect, demand fell, and tech companies have been some of the hardest hit. Companies like Tesla, Intel, Google, and Meta, soon watched as their share price trackers turned into the world’s greatest sledding hills, AMD among them.
From the ATH of $155, AMD is currently sitting at a measly $70, over 50% down in about a year.
The Current Financials
Let’s take a look at AMD’s financials to see what we can learn from them. Since December 2021, almost every metric for AMD has slowly decreased to reflect the bear market (a period of prolonged decrease in investment prices across the board) that we are currently in.
Year over year, the only metrics that are up are revenue and cost of Revenue, so little surprise there due to inflation. Other important metrics include net income (down 92% Y/Y), earnings per share (down 95% Y/Y), and net profit margin (down 94% Y/Y).
Here’s that information laid out:
| Sep 2022 | Y/Y | |
|---|---|---|
| Revenue | 5.565B | +29.03% |
| Net Income | 66M | -92.85% |
| Diluted EPS | 0.04 | -94.67% |
| Operating Income | -13M | -101.36% |
Does this mean that AMD is heading for the gutters? Probably not. Instead, this just tells us that AMD is properly reflecting the global market and has shed some of the hype that surrounded it at its ATH.
The NASDAQ composite (a way of measuring the overall market using the NASDAQ stock market) is down nearly 30% year-over-year, so things are looking pretty standard for AMD in the market that it’s currently in since the company is down a comparable 50% year-over-year (tech stocks have been hit especially hard).
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Final Thoughts
Currently, AMD is down from its ATH in November of 2021, but so is everyone else. The past year has been a rough one for a lot of companies, especially those in big tech, and AMD is about as big tech as it gets.
With interest rates rising, inflation hitting unprecedented highs, and consumer spending slowing down after the pandemic cash dried up, it makes sense that the company shed some value.
Here’s what’s important to remember:
- AMD’s share price exploded from 2018 to 2021 but began to fall around December of 2021.
- The global market isn’t doing all that well, especially large tech companies. As a large tech company, AMD seems to be tracking along pretty well with everyone else. Losing sucks, but at least they have friends to be sad with them (Intel, Google, Meta, and more).
- We don’t know when the bear market will end, but AMD will almost certainly be around to experience the fruits of that season.
- Currently, AMD is listed at around $70, or 50% of its ATH back in November 2021.
