AMD

Analysis of AMD share price

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In the computer technology sector, some companies are popular and followed by many investors. In this article, you will also find information about its online price, its listing and the historical analysis of its prices on stock market graphics.

Latest news

AMD: Group profits up sharply in Q4

28/01/2021 - 09h03

AMD made significant profits in the fourth quarter. This is what should be remembered from the group's newly reported results. As a result, the group has high ambitions for the year 2021.

Elements that can influence the price of this asset:

Analysis N°1

The opening of emerging markets with a policy of adopting a new technological standard and a free trade agreement allow AMD to position itself in promising geographical sectors.

Analysis N°2

The development of e-commerce could also enable AMD to win new customers and generate new revenues. The economic impact of this investment should therefore be monitored in the coming years.

Analysis N°3

AMD's pricing strategy and the development of products in different product lines that will allow it to reach a broad cross-section of the consumer population will also be monitored.

Analysis N°4

The AMD group could also benefit from lower shipping costs for its products, which would have a positive impact on their selling price.

Analysis N°5

Of course, we will also monitor all takeovers and strategic mergers between AMD and other companies that could enable it to position itself in new growth segments.

Analysis N°6

Of course, threats are also very present in the near future of AMD. For example, the group is suffering from isolationist policies in the United States that could have repercussions on other countries and thus curb the company's export sales.

Analysis N°7

Competition from other companies in this sector is also very strong with stable profitability that has increased the number of players in the industry in recent years.

Analysis N°8

It is also important to closely monitor the prices of the main raw materials on which the profitability of AMD's production chain depends significantly.

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General presentation of AMD

The AMD group or Advanced Micro Devices specializes in the creation of semiconductors and develops informatic processors and related technologies for businesses and consumers. The company designs and integrates technologies for intelligent devices such as computers, game consoles and computer servers.

It operates in the informatic and graphic solutions sectors of the company.

The price of AMD’s shares is currently listed on the Nasdaq Select Market All markets in United States. The company AMD is also part of the American Nasdaq 100 stock index and therefore ranks among the 100 American companies with the highest market capitalization in this sector.

Analysis of AMD share price
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The major competitors of AMD

The AMD group is a leader manufacturer and designer of semiconductor and microprocessors in the world. As such, it competes with several other companies specialized or not in this field. AMD currently ranks twelfth in the world ranking of these manufacturers in terms of turnover. To better understand the competition in this sector and which are the most competitive companies compared to AMD, here is the world ranking of companies in this sector according to their turnover.

Samsung Electronics (South Korea)

Micron Technology (United States)

Hynix (South Korea)

Toshiba (Japan)

Texas Instruments (United States)

Broadcom (United States)

STMicroelectronics (France)

Renesas Technology (Japan)

Infineon (Germany)

AMD (United States)

NXP (Netherlands)

Media Tek (Taïwan)

Freescale (United States)

Marvell Technology Group (United States)

ON Semiconductor (United States)

Analog Devices (United States)

The major partners of AMD

To finish here is a list of some of AMD’s recent partnerships:

Fujitsu Microelectronics

In 2015, AMD created a joined venture with the Fujitsu Microelectronics group to consolidate its activities of semiconductor testing and assembling.

Thatic

In 2016, the AMD group stablished a joint venture in China with the company Thatic (Tianjin Haiguang Advanced Technology Investment Co), an investment fund owned by the Chinese Academy of Sciences. The contract also concerned a licensing agreement that reported 293 million of dollars to AMD. AMD will thus supply THATIC with patents of electronic chips for servers that are adapted to the Chinese market.

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The factors in favour of a rise in the AMD share price:

A bullish strategy on the AMD share price, notably as a long term position, should above all be based on a comprehensive analysis of the strengths of this company. This is why we offer you here a complete review of the strong points of this asset and its advantages that can enable this group to continue its growth. 

Firstly, the AMD group benefits from an extremely reliable list of suppliers that assure high quality elements and components at the best price thereby enabling the company to avoid bottlenecks in the supply chain.

AMD also benefits from successful experience in the integration of companies with complementary activities through acquisitions and mergers. These integrations have notably enabled the group to streamline its operations and build a reliable supply chain. In the same way, the strategic acquisition of brands by AMD has enabled it when necessary to develop other product categories.

The AMD group has also managed to achieve significant performance in new markets. Due to this well managed expansion AMD can generate new sources of revenue and reduce the risk associated with the cyclical markets in which it generally operates.

Investors also appreciate the fact that the AMD Group boasts a significant available capital. Due to this sizable capital the group benefits from sufficient resources to successfully launch and pursue new projects and innovations. It is also important to note here that AMD has considerable experience in the development of new and innovative products with numerous patents to its name.

Due to an automated strategy of its activities, AMD has also succeeded in maintaining a consistent quality in its products. This automation has also enabled the company to increase or decrease its production according to the market demand. 

To conclude, the last advantage of the AMD Company, but certainly not the least, is related to its strong product reseller community. The group has in fact been able to develop a true corporate culture with its resellers who take it upon themselves to publicise the AMD products and create internal teams of sellers for these specific products.   

The factors in favour of a drop in the AMD share price:

Although the advantages of AMD shares and the strengths of the group appear numerous it is important also to take into account, when implementing your strategies, the weaknesses and disadvantages of this company which can lead to obstacles for its future growth. Here therefore is a list of this group’s weaknesses that you need to know.

Among the major weaknesses of this asset we note the profitability rate and net contribution percentage of AMD which are generally lower than those of their competitors. Another point, the financial planning of the company is incorrectly managed. In fact, the asset and liquid asset ratio shows that the group could use its capital in a more effective manner than it does at present.

AMD also displays certain weaknesses relative to the management of product demand, often badly forecast, which lead to missing out on certain sales opportunities contrary to its competitors who succeed in correctly predicting the future needs of their clients. AMD is therefore lacking in performance concerning the management of its stock which is higher internally than through the channels.

Another point, AMD has not succeeded in meeting new challenges presented by newcomers in new sector activities and has lost position on certain niche market sectors. The company therefore needs to implement an internal review system with onsite sales teams to conquer new markets.

The turnover rate in the employment of the AMD Company is also significant compared with that of its major competitors. Therefore the company has to continually invest in the training of these employees which makes it less competitive than other companies in this sector that appear to better manage the company entrepreneurial spirit.

Finally, and despite major investment capabilities, the AMD Group does not invest sufficiently in R & D compared to other major players in this sector. Although investments in research and development remain above average, the company is not competitive in respect to this compared to the more dynamic companies in this activity sector that are more innovative. AMD appears to concentrate more on tried and tested products in this market on which it appears to base its strategy.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Who are the largest shareholders of AMD?

The AMD group belongs to different shareholders who share its capital. It is interesting to know these shareholders and their participation in the company. It should be noted in particular that the investment fund The Vanguard Group currently holds 9.8% of the capital of this company. We also then find West Coast Hitech with 6.9% of the shares. Finally, the investment fund BlackRock Inc holds 6.2% of the group's shares.

When is the best time to trade AMD stock?

If you wish to start trading on the AMD share price, you should preferably detect the start of a strong and lasting trend before taking a position if you are considering a long-term strategy. You will preferably use fundamental analysis here. For shorter strategies such as day trading, you can also bet on the more volatile trends using graphs and technical analysis of this stock security.

Where and how to monitor the financial results of the AMD group?

The financial analysis of AMD is essential if you want to invest effectively in this value. To carry out this analysis, you can therefore consult the group's balance sheets and various financial publications which are available on this company's website, in the section reserved for investors. You will find there all the data you need to perform these analyzes and maximize your chances of a successful investment.

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