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If I look at the AMD stock price it seems like when Lisa Su took over AMD in 2014 she brought it back from the dead (and made a 10x valuation in 5 years). Here
by xiphias2 7y ago
If I look at the AMD stock price it seems like when Lisa Su took over AMD in 2014 she brought it back from the dead (and made a 10x valuation in 5 years).
Here's a relatively fresh iterview with her if others are interested as well: https://www.youtube.com/watch?v=amBe2bofVas https://www.youtube.com/watch?v=amBe2bofVas
- NOGDP 7y agoI'm no expert but the 200x P/E ratio seems risky in terms of investing.
- bgorman 7y agoAMD stock has been one of the most speculative stocks over the past ten years
- wahern 7y ago10 years? Try 20+. The last time AMD had this valuation was circa 2000, the first and last time I ever bought AMD stock. Not just AMD; I swore off technology stocks altogether after that, at least for speculation. What AMD taught me early on is that a good product is only a small element of success; a superior product doesn't give much of an advantage, if any at all. And knowing too much about a technology or industry can be dangerous, which is why I swore off technology stocks.
- lottin 7y agoMost people probably don't want to hold individual stocks anyway as it's too risky an investment. Mathematical models suggest that the optimal investing strategy for any investor is holding a "well-diversified" portfolio in which firm-specific risks cancel themselves out and you are left with the minimum possible amount of risk.
- jdsully 7y agoIt's a bet they can take dramatic share from Intel. Intel earned $21bln last year, if they had AMD's market cap it would be a P/E of 2.07. If you don't believe AMD can take significant share away from Intel then the valuation doesn't make sense.
- pg_is_a_butt 7y agoExactly. That's what I told everyone when I convinced a bunch of people to invest ~$8... just sold it all for ~$38 because I think all the fed injection is going to crash the market. Sorta regretting it. I still believe in AMD... used to work across the street from them in Sunnyvale. Just bought a ThinkPad T495 with a Ryzen 7 pro today. 50% off... couldn't say no. Only issue now is do I install linux or keep Windows 10 Pro. Maybe I should buy MSFT. This is my first non mac purchase since early 2000s.
- paulie_a 7y agoAMD has consistently been a winner of a stock to buy and sell for the last 15 years with basically no risk.
- ac29 7y agoI'd give far more credit to Jim Keller, who returned in 2012 and designed Zen. AMD also benefited from Intel stumbling on 10nm and TSMC leapfrogging them. Zen 2 wouldn't be nearly as compelling if it was stuck on Global Foundries 14/12nm process (which is actually licensed from Samsung). To AMD's credit though, they've executed very well - Jim left in 2015 with more than several Zen generations designed, but there has obviously been significant effort by far more people than just the project lead.
- agumonkey 7y agoAnd to all the people around in the Ati merger and APU era because they wanted to try new things. It didn't work but they were already innovating and they kept going even when struggling.
- Roritharr 7y agoI'd love to get career advice from him. He's famous for all the right reasons! Sadly rare nowadays.
- baybal2 7y agoZen was not designed by Keller. He had his hand on Zen 2, and in a role more of a project manager/team lead than a chief architect
- rrss 7y agoAre you certain? https://www.anandtech.com/show/9643/jim-keller-leaves-amd https://www.anandtech.com/show/9643/jim-keller-leaves-amd and https://www.youtube.com/watch?v=SOTFE7sJY-Q https://www.youtube.com/watch?v=SOTFE7sJY-Q (along with everything else I've seen) indicate otherwise.