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RyceCube asked in Business & FinanceInvesting · 8 years ago

Should I Buy AMD Stock?

Currently AMD is at $2.65 a share. My thoughts are that the PS4 will help their stock rise if they are in fact using AMD chips for their processors. Furthermore the stock value is extremely low and the potential to rise even slightly yields a greater rate of return. I'm new to the stock market and would like any educated advice I can get to make this decision, or any suggestions on other stocks that would be wise to jump on board.

Please included sources if possible

3 Answers

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  • John
    Lv 6
    8 years ago
    Favorite Answer

    Your approach to buying stock is the usual novice first stab at deciding how to buy stock - some known event will happen which will raise sales. The problem is that short-term increases in sales especially when known and expected have nothing to do with stock price. Yahoo Answers is full of questions from people about "I know the Return of the King is going to be a big movie so I want to buy [blah] stock" or "I know Call of Duty Black Ops III is going to be big so ..." or even "I know lots of people will shop at Toys R Us this X-mas". If everyone knows it (or even smart money knows it), it's not relevant.

    Stock is priced on long-term growth and risk associated with that growth, not short-term cash flow. Buying stock is not the same thing as evaluating the creditworthiness of someone for a 1 year loan.

    The answer to your question is that I have no idea as there are too many moving parts for me. There are big competitors out there like Intel and Qualcomm and the future of chips is murky to me. In particular, I now buy computers like I buy lawnmowers. I replace them when they get worn out not because I want more capability. I think PS4 will be nearly like that - your gaming experience is just not going to be better because game designers aren't complaining much about the capabilities of the current system. At the end of the day, the weak point in gaming is you not the system. I can create sensory experiences that are too complex for your brain and your eyes and your ears on current systems. That whole limiting factor is bad news for the chip industry until we start making robots who are not as limited as we are.

  • 8 years ago

    AMD future to tied to PC sales and PC sales as we all know are falling like rocks. Unfortunately AMD has not been able to break into the mobile phone, tablet market. They are too tied to PC and I don't see them doing well at all in the near future. In fact they are losign cash flow and money every quarter. Chapter 11 is a possibility for them if they don't turn around.

  • Anonymous
    4 years ago

    i like AMD microprocessors, whether if computing device revenues carry on with the fad of vehicle revenues and abode revenues I isn't identifying to purchase any microprocessor shares till I see them on the upward push lower back.

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