Differences between Investing vs Trading
Differences between Investing vs Trading
Advanced Micro Devices (AMD) is an industry-leading producer of computer processors and related technologies. AMD now serves both the domestic and corporate tech markets, bringing a host of state-of-the-art microprocessors, graphics processors, motherboard chipsets and many more parts to market.
In 2014, AMD underwent a significant reorganisation of its operations, reshuffling into two distinct business divisions – Computing and Graphics. The move was designed to refocus and double down on the firm’s unique selling points. In 2020, AMD forked out a reported $50 billion to acquire Xilinx in an all-stock purchase. Xilinx specialised in programmable logic devices, with their expertise brought in-house.
AMD is one of the largest suppliers of microprocessors in the world and competes directly with Intel. Other major AMD competitors include Texas Instruments, Applied Materials, Micron Technology, NXP Semiconductors, NVIDIA, and Taiwan Semiconductor Manufacturing. AMD also has a large number of smaller competitors. These companies are constantly innovating and trying to gain market share from AMD. As a result, AMD must continually invest in research and development in order to stay ahead of the competition.
Founded: May 1969, Santa Clara, California
Founder: Jerry Sanders
Headquarters: Advanced Micro Devices, Inc. 2485 Augustine Drive, Santa Clara, California, 9504 US
AMD went public way back in July 1982, when it was floated at a share price of $4.20. During the dot-com boom, the AMD share price was worth upwards of $44 per share, but the great recession of 2008 brought a significant downturn to lows of $2.13 per share in December 2008.
It was one-way traffic upwards following the economic recovery and even in the midst of the Covid-19 pandemic the AMD share price remained buoyant, scaling an all-time high of $164.46 per share in November 2021. However, the rampant global inflation has caused a retraction of AMD shares down to $85 per share as of late July 2022.
Advanced Micro Devices, Inc. (AMD) is firmly cemented in the S&P 500 – the top 500 most valuable companies listed on the American stock markets. Consequently, the AMD share price can be a substantial barrier to entry for first-time investors. With contracts for difference (CFD) trading platforms, it’s possible to speculate on the price of AMD shares using leverage. This allows you to deposit a small percentage of your entire market exposure upfront, minimising the initial outlay. Bear in mind that leverage not only maximises potential profits but prospective losses too.
The beauty of CFD trading is that you can speculate on falling assets too. The short-selling function allows you to profit if the price of AMD shares falls rather than rises.
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* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.
The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.
Are AMD shares a good investment?
While AMD shares may offer investors some potential benefits, there are also a few risks to consider before investing. Some of the potential advantages of investing in AMD shares include the company's strong financial position, its innovative product offerings, and its growing market share. However, it's also worth considering some of the risks associated with an investment in AMD stock, such as potential competition from Intel, macroeconomic conditions, and sector-specific risks.
Ultimately, whether or not AMD shares are a good investment will come down to your personal investment strategy and risk tolerance. However, by doing your research and keeping an eye on key factors, you can make an informed decision about whether or not AMD stock
Who owns most AMD shares?
There is no single entity that owns the majority of AMD shares. As of May 2020, the top 10 institutional investors in AMD included Vanguard Group, BlackRock, State Street Corporation, and Morgan Stanley, all of which owned less than 10% of outstanding shares. The largest individual shareholder in AMD is CEO Dr. Lisa Su, who owns approximately 1.2 million shares.
Do AMD shares pay dividends?
No, Advanced Micro does not currently pay dividends on its common stock. The company has never declared or paid dividends on its common stock. There are no plans to declare or pay dividends in the foreseeable future. Advanced Micro's board of directors regularly reviews the company's dividend policy in light of its financial condition, results of operations, cash flow, and other factors. The board believes that retaining earnings for use in Advanced Micro's businesses is in the best interests of the company and its shareholders at this time.
Why Trade [[data.name]]
Make the most of price fluctuations - no matter what direction the price swings and without capital restrictions that come with buying the underlying asset.