Buy AMD Shares: The Complete Guide
In the computer age, the choice has been between Intel or AMD CPUs for many years and this fascinating technological and commercial battle continues still today. Buying AMD shares seems to offer great profit opportunities, but is that really the case?
This guide serves precisely to assess whether this investment is as it appears or if there are unknowns to take into consideration.
We will also show you the steps required to invest in assets, which we can summarize in 3 steps:
- Choose a CFD Broker that offers a safe and intuitive platform.
- Practice on the Demo account to practice without taking risks.
- Make a small deposit to invest on the real market.
OnlineTradingCourse.net has selected the best platforms to buy AMD shares without paying commissions, one of which is offered by eToro, the market leader.
Min. Deposit: 200€
Min. Deposit: 400€
Min. Deposit: 10€
Min. Deposit: 100€
Min. Deposit: 100€
Min. Deposit: 250€
Min. Deposit: 250€
Min. Deposit: 250€
- 1 AMD Shares: Real-time quotation and price
- 2 AMD: History
- 3 How to buy AMD shares
- 4 Where to buy AMD shares
- 5 AMD business model
- 6 Is buying AMD shares worth it?
- 7 AMD’s competitors
- 8 AMD shares forecasts
- 9 AMD Target Price
- 10 Conclusions
AMD’s story begins in 1969, when Walter Jeremiah (Jerry) Sanders and 7 other collaborators founded the company.
The company started making computer chips and has grown steadily. In 1982, it signed an agreement with IBM for microprocessors suitable for its PCs.
In 1991, AMD released Am386 microprocessors, competing with the Intel’s 32-bit 386 microprocessor.
After that, in 1996, AMD acquired a microprocessor company known as NexGen and began expanding into the Intel compatible chip market. In 2000, AMD introduced the Athlon processor and became the first company to produce a 1 GHz (gigahertz) microprocessor.
From that moment AMD had become a true antagonist of Intel and in the following years, with a series of acquisitions, it continued its expansion.
AMD is listed on NASDAQ, one of the most popular stock indices for technology stocks.
The AMD stock is listed on the New York Stock Exchange, but buying AMD shares is also possible from your home PC, just by choosing a good CFD Broker.
The important thing is to choose a reliable broker. In order to be sure, it must have these 3 characteristics:
- It must offer CFDs, contracts for difference, that allow you to invest both up and down (short selling).
- You don’t have to pay commissions.
- It must have the authorization of at least one supervisory body such as FCA or CySEC.
To buy (or sell) AMD shares on one of the trading platforms offered by these online brokers you need to:
- Buy the AMD CFDs to earn if the stock goes up.
- Sell the AMD CFDs to earn if the stock goes down.
When the stock reaches the expected price, the transaction can be closed and any net profits can be collected, without paying commissions.
The platform to use to buy AMD shares can make a difference and we recommend to choose it carefully.
The ideal would be to test all the platforms and select the one that best meets your needs.
If you don’t have time for these “tests”, OnlineTradingCourse.net has already carried them out and concluded that the best CFD brokers where to buy AMD shares safely are: eToro, ForexTB and Trade.com.
The final choice is still up to you: Register, try their respective Demo accounts, and choose the one you prefer.
eToro with its community of over 7 million active traders is the leader of the market.
The security of this intermediary also derives from its numerous licenses, such as that of FCA.
The most interesting feature of eToro is its platform, which is fast and intuitive like few others.
Below the AMD stock:
To buy AMD shares (or sell them), you have to click on “Invest”, decide whether to Buy or Sell the stock, and how much to invest in the operation.
Its fame comes not only from the intuitive platform but also from a revolutionary patent called Copy Trading.
This system allows you to copy the market transactions of the best investors in the world (chosen directly on eToro), in a fully automated manner and at no additional cost.
To use Copy Trading you have to follow these steps:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders (which can be copied):
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB has achieved its current popularity thanks to a series of completely free services.
Clearly, this broker is also absolutely safe and can boast the authorization of the prestigious CySEC, valid throughout Europe and the UK.
ForexTB allows you to choose between 2 trading platforms, both free:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
To buy AMD shares (or sell them) simply click on Sell or Buy and decide how much money to invest in the operation.
ForexTB’s famous trading support is based on the Free Trading Signals which are sent to all investors. These indications are very precise and are successful 70% of the time, an excellent support for online trading.
ForexTB tries to help above all novice traders and for this reason, it has created for free a Trading Course considered among the best in its category. This ebook summarizes the basics of online trading and allows you to learn technical analysis in a simple way and with practical examples.
Trade.com notoriety has spread incredibly thanks to its very professional platform and to the entry threshold.
The minimum deposit required by Trade.com to open a real account is in fact only 100 Euros, much lower than the average on the market.
The security of this intermediary is guaranteed by FCA.
In the screenshot below, you can see the AMD CFDs:
To buy (or sell) AMD shares, just click on Buy or Sell and decide how much to invest.
Trade.com relies heavily on training, which is necessary to improve the performance of its users. The notions of technical analysis are the basis of a good profit in trading and this Broker has created a very complete trading course, a pdf that can be downloaded for free using the link below:
To open a real account with Trade.com you need at least 100 Euros, an amount lower than the average. However, to get started there is always the totally free and unlimited Demo account.
AMD business model
Advanced Micro Devices, Inc. (AMD) is a company specialized in the production of semiconductors used in various computer components.
The business model is based on the supply of specific microchips to companies that make computers, notebooks, servers, tablets, and many other essential components in consumer electronics.
Below, you will find some data related to AMD:
- Quotation: NASDAQ (AMD)
- Indices: NASDAQ 100 component, S&P 500 component
- Sector: Semiconductors
- Foundation: 1969
- Founder: Jerry Sanders
- Headquarters: Santa Clara, California, USA.
- Revenue: $ 6.48 billion (2019)
- Net profit: $ 341 million (2019)
- Employees: 11,400
The consequences of the coronavirus have been disastrous for many companies, but not in the case of AMD.
In fact, the chip manufacturer wiped out the pandemic and continued to follow the growth trend that started a couple of years ago:
AMD’s success comes mainly from its versatility. This company makes processors for everything: From PCs and laptops to data centers.
This growth is of great concern to the historic leader Intel, which despite being much larger and capitalized, cannot keep up with AMD.
Buying AMD shares is worthwhile because:
- In 2020, the shares of this company increased by over 80
- Revenues grew by 33% also in the first half of 2020 compared to the same period of 2019
- Net profit increased by 525% on an annual basis in the very first 6 months, despite the outbreak of the pandemic.
Here is the list of AMD’s main competitors although, only Intel can really bother this company:
- Texas Instruments
- Micron Technology
Following the rise in AMD stock prices, its market capitalization reached $ 100 billion.
The company is continuing its acquisition policy by negotiating to buy Xilinx, a leading designer of programmable chips (FPGAs), with more than $ 3 billion in annual sales.
This acquisition would help AMD gain market share that belongs to its long-time antagonist: Intel.
The graph below clearly shows the growth trend of the AMD stock, which at the moment seems to be moving sideways in the short term. However, according to analysts it is destined to continue to the upside:
The forecasts of the major investment banks are mainly bullish for the AMD stock, which is very interesting both in the short and long term. Here are the assessments of the analysts:
- Barclays has issued an “equal weight” rating on the semiconductor maker’s shares.
- BNP Paribas upgraded Advanced Micro Devices from a “neutral” rating to an “outperforming” rating and set a target price of $ 110.00 for the company.
- UBS raised the target price for AMD and assigned the company a “neutral” rating.
- BMO Capital Markets raised the target price for AMD and awarded the company a “market performance” rating.
- BidaskClub has downgraded Advanced Micro Devices from “purchase” to “pending”.
- Credit Suisse Group raised its price target for Advanced Micro Devices and assigned the stock a “neutral” rating.
AMD Target Price
Leading international analysts have released valuations and pricing targets for Advanced Micro Devices with a predominantly long-term bullish bias.
The 12-month target price for AMD is $ 110.00 and currently, out of 36 analysts we considered: there are 1 sell rating, 15 pending ratings and 20 buy ratings for the stock, with good consensus for the stock purchase.
In addition to solidifying AMD’s status as a large-cap semiconductor company, the acquisitions of this company are enhancing the competition that has been totally annihilated by Intel for many years.
In this guide, we have examined the current situation of the company, the economic results, the performance of the stock, and future forecasts.
Buying AMD shares seems to be an excellent investment in both the short and long term, but pay attention to the entry price.
If you do not have much trading experience, we recommend that you start by practicing with the Demo account that online brokers offer to their investors. Only after becoming familiar with the chosen platform, you can make the minimum deposit required by the Broker and really invest in the AMD stock.
Here are the official links to access the Demo accounts of the best online brokers:
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the Trade.com Demo account for free from this link
According to the main international analysts, yes, but the entrance price is fundamental.
Long-term forecasts are on the upside, for more details read our guide.
The 12-month target for AMD stock is $ 110 per share.
A CFD Broker like eToro offers the possibility to invest in AMD shares safely and without paying commissions.