Should my 19-yr-old Son by more Stock in AMD

dailybuck777

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Jan 2, 2018
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My son is very involved in film making and believes that AMD computer chips are much higher quality than Intel Chips and that the AMD chips are much more economical. He bought a $1,000 worth of AMD at $31 per share and it is currently worth about $79 per share. He is thinking of buying another $5,000 worth of the stock. (He has about $30,000 of his own money -- mostly given to him by his Chinese aunt and uncle)

I am leery of buying stock on a strong upswing, but people have obviously done well with stocks like Apple and Amazon which have gone up and up and up. In any event, without much knowledge of this stock on my part, I am currently neutral. If people have ideas or special knowledge of AMD or the computer industry, I would like to hear their suggestions.
 

PSU.:.

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Jun 18, 2012
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I don't know have any stock knowledge but I built my PC with all AMD parts. They are selling a lot more hardware then before which is probably why the stock is way up. AMD is very popular right now because of quality and good prices, so I probably get in while its good.
 
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The Song Remains the Same

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Sep 20, 2016
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My son is very involved in film making and believes that AMD computer chips are much higher quality than Intel Chips and that the AMD chips are much more economical. He bought a $1,000 worth of AMD at $31 per share and it is currently worth about $79 per share. He is thinking of buying another $5,000 worth of the stock. (He has about $30,000 of his own money -- mostly given to him by his Chinese aunt and uncle)

I am leery of buying stock on a strong upswing, but people have obviously done well with stocks like Apple and Amazon which have gone up and up and up. In any event, without much knowledge of this stock on my part, I am currently neutral. If people have ideas or special knowledge of AMD or the computer industry, I would like to hear their suggestions.
I'm in at $24/share and buying more. My financial advisor has his largest total client exposure right now in AMD. Fwiw.
 
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dailybuck777

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Buck: I'd consider suggesting that he buy some Tesla, but then this thread could go on for pages. :cool:
My son owns shares in the Chinese Tesla and has made money on that. He is big on Tesla and has half-convinced me that it is not a pipe dream. My daughter also loves Teslas.
 

PaoliLion

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Nov 2, 2003
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My son is very involved in film making and believes that AMD computer chips are much higher quality than Intel Chips and that the AMD chips are much more economical. He bought a $1,000 worth of AMD at $31 per share and it is currently worth about $79 per share. He is thinking of buying another $5,000 worth of the stock. (He has about $30,000 of his own money -- mostly given to him by his Chinese aunt and uncle)

I am leery of buying stock on a strong upswing, but people have obviously done well with stocks like Apple and Amazon which have gone up and up and up. In any event, without much knowledge of this stock on my part, I am currently neutral. If people have ideas or special knowledge of AMD or the computer industry, I would like to hear their suggestions.

My best advice is to buy stocks bases on macro trends rather than micro trends. AMD is hot right now because it’s beating intel, but the PC market is a low single digit growth business. The micro trend here is AMDs hot stock, the macro trend is a slow growth business that’s going to face increased competition from abroad.
 

Big 0

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Jun 28, 2001
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I would never go on a football message board for stock advice. I would advise investing in good, low cost mutual funds unless you are into playing the lottery like it is holding a couple individual stock positions. That is, unless you have millions to invest and are able to create your own well diversified stock portfolio. Most people are not in this position. If you have some “play” money that you can afford to lose, then go ahead. One could make a killing, and then again lose most or all of it. I have seen both happen to friends of mine.
 

JustinTyme

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Aug 23, 2020
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AMD has been around a long, long time and has been a great choice when building a PC since I built my first one as an undergrad. That said, I'm not sure why it is now suddenly a more popular choice than before. It was great before as well. Nice that the stock popped but I'm not sure that I see the long term upside of an Apple or Amazon here.
 
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mrmk5110

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Jan 4, 2018
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The AMD and Intel battle is cyclical, right now AMD is winning because of their better architecture and largely better pricing structures over the past few years. I have Intel right now but my next build will be AMD.

That being said, these cycles come and go, and once Intel recovers from being too complacent and gets their 7nm going in a few years who knows what the landscape will look like.
 

Agoodnap

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Sep 27, 2015
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My take is that AMD exists because Intel needs them to exist in order to avoid the US Governament bringing the Sherman Antitrust Act into play.
 

PSULionsDub

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Sep 17, 2018
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What do you guys think of REIT stocks? Certain REITs, Hotel, Retail, office, mortgage, have lost quite a bit of value due to COVID-19. It seems that it’s only a matter of time until they bounce back so they could be relatively cheap buys these days if one is patient.
 

PSUSignore

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May 29, 2001
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Nobody here knows. Nobody anywhere knows except maybe the executives at AMD that are subject to insider trading laws. Individual stocks are a gamble. If your son can't afford to lose most of it then he shouldn't be investing in it. Personally I invest in large index funds, set it and forget it.

Anyone that says they think they know what the market will do is full of crap. If they could do that with any sort of regularity, they'd be a billionaire and they wouldn't be giving out free advice on a PSU message board.
 
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SLion

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May 29, 2001
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Buy anything. The Federal Reserve is just going to keep piling on debt to keep bubble roaring. Who cares about sales or revenue. FOMO forever..
 

JustinTyme

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Nobody here knows. Nobody anywhere knows except maybe the executives at AMD that are subject to insider trading laws. Individual stocks are a gamble. If your son can't afford to lose most of it then he shouldn't be investing in it. Personally I invest in large index funds, set it and forget it.

Anyone that says they think they know what the market will do is full of crap. If they could do that with any sort of regularity, they'd be a billionaire and they wouldn't be giving out free advice on a PSU message board.
I mostly do ETFs for similar reasons. I like to keep about 5% of my total portfolio to play with individual stocks though. Just find it entertaining and often do outperform the market considerably this way. It could even out over time, who knows. But since I retired pretty young I find it to be an enjoyable hobby.

And when I do become a billionaire, I'll post my advice for free on the board. At that point, I'd be making enough that I won't care to charge for the advice. If you don't hear market advice from me much, just assume that I haven't hit 10 figures yet.
 

Frank3

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Aug 27, 2001
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I used to do a lot of business with Intel but most of my contacts left the company so it went away. Recently I have noticed that a lot of them are all working at AMD now so that might be telling.. Trying to get back in!
 
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Hugh Laurie

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Mar 26, 2017
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My son is very involved in film making and believes that AMD computer chips are much higher quality than Intel Chips and that the AMD chips are much more economical. He bought a $1,000 worth of AMD at $31 per share and it is currently worth about $79 per share. He is thinking of buying another $5,000 worth of the stock. (He has about $30,000 of his own money -- mostly given to him by his Chinese aunt and uncle)

I am leery of buying stock on a strong upswing, but people have obviously done well with stocks like Apple and Amazon which have gone up and up and up. In any event, without much knowledge of this stock on my part, I am currently neutral. If people have ideas or special knowledge of AMD or the computer industry, I would like to hear their suggestions.


This week I bought puts to insure my entire portfolio from a general downturn in the market in the event Biden wins or the election ends up in the courts. I think it's money well spent. Currently I'm not putting any money into the market until after the election results are known. The markets hate uncertainty.
 
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ClarkstonMark

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May 23, 2002
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This week I bought puts to insure my entire portfolio from a general downturn in the market in the event Biden wins or the election ends up in the courts. I think it's money well spent. Currently I'm not putting any money into the market until after the election results are known. The markets hate uncertainty.
hasn't the market already priced in a Biden win?
 

Hugh Laurie

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Mar 26, 2017
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hasn't the market already priced in a Biden win?

I would argue that a Trump win is what's baked in. Further, stocks are significantly overbought as measured by the market cap to GDP ratio. During this pandemic, GDP has fallen while stocks (and market cap) have risen, creating the highest level of overvaluation since the ratio came into existence.

Many economists agree that Biden's economic policies are anti business/anti jobs, (raising corporate taxes, raising individual and capital gain tax rates, $15 national min wage, restrictions on independent contractors, a return of the regulatory-laden Obama rules, etal), and its not even debatable. If Biden were to win, the market IMO is going to tank significantly. .
 
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katchthis

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Sep 3, 2004
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I would never go on a football message board for stock advice. I would advise investing in good, low cost mutual funds unless you are into playing the lottery like it is holding a couple individual stock positions. That is, unless you have millions to invest and are able to create your own well diversified stock portfolio. Most people are not in this position. If you have some “play” money that you can afford to lose, then go ahead. One could make a killing, and then again lose most or all of it. I have seen both happen to friends of mine.
You get em Bogle. Buy the whole haystack instead of trying to find the needle in it.
 

IrishHerb

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Nov 18, 2006
2,709
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What do you guys think of REIT stocks? Certain REITs, Hotel, Retail, office, mortgage, have lost quite a bit of value due to COVID-19. It seems that it’s only a matter of time until they bounce back so they could be relatively cheap buys these days if one is patient.

If I wanted to go into REIT stocks, I think I'd focus on REITS that are into 2 categories ... (1) cloud computing storage space; (2) space for pharmaceutical research and development. Just my opinion.
 

dailybuck777

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Jan 2, 2018
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What do you guys think of REIT stocks? Certain REITs, Hotel, Retail, office, mortgage, have lost quite a bit of value due to COVID-19. It seems that it’s only a matter of time until they bounce back so they could be relatively cheap buys these days if one is patient.
Part of what I do is invest in real estate, and I wouldn't touch REITS now. I think there is a very substantial chance of a real estate crash in 9 to 18 months Lots of small businesses such as restaurants are going out of business or hurting very badly and eventually the removal of their money will reduce the number of buyers and weaken the real estate market. I would wait to see how that plays out.
 

dailybuck777

Well-Known Member
Jan 2, 2018
7,451
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I would never go on a football message board for stock advice. I would advise investing in good, low cost mutual funds unless you are into playing the lottery like it is holding a couple individual stock positions. That is, unless you have millions to invest and are able to create your own well diversified stock portfolio. Most people are not in this position. If you have some “play” money that you can afford to lose, then go ahead. One could make a killing, and then again lose most or all of it. I have seen both happen to friends of mine.
The board is just one of about 20 things I would consider. Some people here are quite knowledgeable and their info is valuable.

On a separate subject, on this board, I asked whether people thought I should have a cancerous polyp removed surgically or by way of a tube the would clip the polyp off. Everyone here said to have the surgical removal, which was my preference also. It worked out well. The Doc who would have removed the polyp by way of the tube, tried to sell me on his procedure. The problem with the tube procedure is that you don't have nearly as much tissue to check for spread after the operation. I am very glad that 4 inches of my colon was removed and that about 20 biopsies of it were done and that nothing was found. The tissue surrounding the polyp couldn't have been biopsied nearly as well if I had just had the polyp clipped off.
 

dailybuck777

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Jan 2, 2018
7,451
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My best advice is to buy stocks bases on macro trends rather than micro trends. AMD is hot right now because it’s beating intel, but the PC market is a low single digit growth business. The micro trend here is AMDs hot stock, the macro trend is a slow growth business that’s going to face increased competition from abroad.
Good point about the larger market. Thanks
 

stater02

Well-Known Member
Dec 28, 2007
363
351
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It's not 1999 anymore. NVDA and AMD are making big moves while INTC slumbers.

I disagree on Nvidia. They are p*ssing off loyalists and enthusiasts with stock availability issues. AMD could take out both Intel and Nvidia, as it is set to launch aGPU that will rival the latest from Nvidia. If they have availability at launch, Nvidia is going down hard.
 

NatLion

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Nov 15, 2004
1,501
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Your son got lucky. Good for him. Whether he continues to get lucky won't be because he knows something about AMD or the broader future than anyone else. Markets reward risk takers. If you want to be on the winning side of that you will take measured, diversified risk. All-or-nothing single-stock or single-themed bets are better off being taken at a casino.
 

dailybuck777

Well-Known Member
Jan 2, 2018
7,451
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Your son got lucky. Good for him. Whether he continues to get lucky won't be because he knows something about AMD or the broader future than anyone else. Markets reward risk takers. If you want to be on the winning side of that you will take measured, diversified risk. All-or-nothing single-stock or single-themed bets are better off being taken at a casino.
I am agree to a good extent with your analysis. If my son makes money, great. If he loses money, the lesson learned is worth far more than the money lost. I gave both him and my 15-yr-old daughter $1,000 and told them that they had to invest it in the stock market and keep it there 18 months. (didn't mention this earlier to keep my question simpler)

It is amazing what kids don't know sometime. My daughter is in gifted education and still doesn't understand what a stock is. Her brother is helping her invest and she will eventually learn by experience. Much better than simply explaining it.
 
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Wallace Breen

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Mar 11, 2016
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My son is very involved in film making and believes that AMD computer chips are much higher quality than Intel Chips and that the AMD chips are much more economical. He bought a $1,000 worth of AMD at $31 per share and it is currently worth about $79 per share. He is thinking of buying another $5,000 worth of the stock. (He has about $30,000 of his own money -- mostly given to him by his Chinese aunt and uncle)

I am leery of buying stock on a strong upswing, but people have obviously done well with stocks like Apple and Amazon which have gone up and up and up. In any event, without much knowledge of this stock on my part, I am currently neutral. If people have ideas or special knowledge of AMD or the computer industry, I would like to hear their suggestions.

Stocks are always interesting. It is always better to buy low than high. Intel stocks are currently down while AMDs is going up. The problem is nobody really knows how high but there are a few things to consider that AMD has going for it and two they certainly don't.

1. AMDs consumer CPUs are simply better right now, and they cost less. Given how CPUs are designed and fabricated, it will take Intel a few years to catch up on the performance per dollar front.

2. AMD has significant growth potential in the laptop space but until Dell and HP starts putting their chips in their professional series, it is just potential.

3. Sony and Microsoft are getting ready to release new Playstations and XBoxs featuring AMD platforms for the second straight generation. These chips will push a lot of volume initially.

4. AMDs GPUs are catching up to nvidia after a 15 year stretch of mostly non-competitive products at the high end. They have been doing much better in the middle and generally better at the low end.

Now the one big thing going against them. The high profitable server, workstation and HPC space. AMD products are not nearly as competitive here. They are getting there on the CPU front but the lack of a super end GPU limits them on the HPC and workstation side.
 

BostonNit

Well-Known Member
Mar 15, 2003
522
649
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My son is very involved in film making and believes that AMD computer chips are much higher quality than Intel Chips and that the AMD chips are much more economical. He bought a $1,000 worth of AMD at $31 per share and it is currently worth about $79 per share. He is thinking of buying another $5,000 worth of the stock. (He has about $30,000 of his own money -- mostly given to him by his Chinese aunt and uncle)

I am leery of buying stock on a strong upswing, but people have obviously done well with stocks like Apple and Amazon which have gone up and up and up. In any event, without much knowledge of this stock on my part, I am currently neutral. If people have ideas or special knowledge of AMD or the computer industry, I would like to hear their suggestions.

I showed your post to my 23 y.o. son who has started an investing page on instagram and without even having to look anything up he said no NO NO! P/E ratio is not where it should be for a long-term hold, plus all the other comments here about that market being very cyclical.

If anyone is interested in checking out my son's page, The Pleb Investor, it can be found at The Pleb Investor.

I'm pretty impressed by the look and feel and the analysis he puts into it. Started earlier this year and is now pushing 10K followers.
 

bytir

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Jul 4, 2011
747
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I know, it feels much more like late 2000.

For those in love with AMD and those considering investing in AMD you may want to read this article. It's primary purpose is a comparison of power usage between Intel and AMD processors but the author does do some performance and cost analysis. The article unfortunately does not include the added complexity and cost required to cool the chips.

May want to check the date on that article. The chipset quoted for intel is over 13 years old - that is several lifetimes in the processor world.