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Advanced Micro Devices is an Interesting Stock

Still considering to invest in AMD, but other companies seem more secure.

Edited: 2015-05-22 17:26

By. BlueBoden

One of the stocks that i just keep checking is Advanced Micro Devices, which was one of the first stocks i ever brought—and i had a good return too on this first investment, which i still haven't forgotten.

I was very hesitate to buy stocks when i first started investing, so my investment in AMD only amounted to a ridiculous 8 shares, which cost me a total of $27, so a sudden 10% gain didn't amount to much. But nevertheless, it was the money i had available at the time, and i really wanted to try investing, so i suppose it is a good thing that my first investment ended up giving me a 10%+ return.

Always liked AMD

In the past i used to build my own computers from the ground up, i would go and buy all the different parts, like motherbord, memory and CPU. The critical parts being the motherboard, ram and the CPU – other parts could often be reused from the old system.

It was when i started building my own computers that i decided to use AMD processors, since they supported 64bit architecture. Today i likely don't care. But i still think i would choose AMD if i were to build again, since it is so much cheaper than Intel.

Since AMD has been first with certain advances in processors, i don't really think its entirely fair, that they are in such a poor position today.

The future of AMD looks dark

One of my reasons for investing in AMD at the time, despite my ridiculous low investment, was that AMD was trading low at the time and i expected it to go up, simply because of their technology and position in the market.

I sold my 8 shares and made a small profit, and then shortly after i saw the shares drop significantly. And they basically kept dropping, and then a wave of bad news just seemed to surface. The future of AMD went from looking bright to looking very dark.

I don't feel right about AMD anymore, and it seems like a very speculative investment. I still think there is a chance that the stock will bounce back up, but i just won't invest in the company again, until their products either get more competitive, or until they land some good deals. The wave of recent bad news, change of CEO, etc. just doesn't seem worth it anymore.

Why invest in a company with so much uncertainty surrounding it, when other companies seem to offer almost guaranteed profit? I personally still keep an eye on news related to AMD, perhaps i even want to short the stock if it drops enough. But i just do not want to seriously invest in companies that are not doing good.