5 ms·

I'm no expert but the 200x P/E ratio seems risky in terms of investing.

by NOGDP 7y ago

bgorman 7y ago
AMD stock has been one of the most speculative stocks over the past ten years
- wahern 7y ago
  10 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 ago
    Most 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 ago
It'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 ago
  Exactly. 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 ago
AMD has consistently been a winner of a stock to buy and sell for the last 15 years with basically no risk.

I'm no expert but the 200x P/E ratio seems risky in terms of investing.

by NOGDP 7y ago

I'm no expert but the 200x P/E ratio seems risky in terms of investing.

bgorman 7y ago

AMD stock has been one of the most speculative stocks over the past ten years

wahern 7y ago
10 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 ago
  Most 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 ago

It'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 ago
Exactly. 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 ago

AMD has consistently been a winner of a stock to buy and sell for the last 15 years with basically no risk.