Advanced Micro Devices
SemiconductorsProcessors and AI chips, NVIDIA's main rival
$162.30 +2.10% today · Market cap $262B
Step 1 · The business
What does it do?
AMD designs processors for PCs, game consoles and servers, and is building AI accelerators that compete with NVIDIA.
How it makes money
Share of yearly revenue
Step 2 · The case for
Why might investors care?
What people like about it, then how the business is doing — each number in plain words.
- Gaining share in server chips
How it's doing
Revenue growth
Sales grew 14% over the past year.
Large companies often grow 3–10% a year.
Profit margin
It keeps about $7 of profit from every $100 of sales.
Varies by industry: retailers ~3%, software 30%+.
Price / earnings (P/E)
Investors pay $120 for each $1 of yearly profit.
The S&P 500 average is around 20–25×.
Dividend yield
Pays no dividend — profits are reinvested.
Steady, mature companies often pay 2–4%.
Step 3 · The case against
What could go wrong?
The risks people point to, and how bumpy owning it can be.
- Far smaller than NVIDIA in AI
- High price relative to current profits
Typical yearly swing
In a typical year the price might end ~50% above or below where it started.
The S&P 500 swings about 17% a year.
If the market fell 15%
A broad 15% fall would move AMD about 15% in MAVEST's scenario model.
A learning scenario, not a forecast.
Debt level
Little debt, so less pressure when times are tough.
Step 4 · Your turn
Before you decide
Questions worth answering for yourself — there are no right answers.
- 1At a P/E of 120, investors expect a lot of growth. What would happen to the price if growth disappoints?
- 2It moved up 2.1% today. Would you still be interested if it hadn't?
- 3It typically swings about 50% a year. Could you hold on through a 30% drop?
- 4If you already own Semiconductors companies, does this add something new — or more of the same?
In your portfolio
You haven't built a practice portfolio yet. Thinking this through starts one, or open Portfolio Lab.
Starts the Decision Coach · practice money · you choose the amount
Price history
Simulated history on mock data. A price move alone isn't a reason to decide.
$162.30+2.10% today
+21.87% over 1Y · Market cap $262B
What others are thinking
Reasoning shared by other learners — not tips.
No one has shared research on AMD yet. Yours could be the first.
Others in Semiconductors