I bought AMD at $28 (small position, 10 shares) and have held since. I’m trying to evaluate whether it still fits a long term value thesis or if it’s now closer to fair value.
How do you currently value AMD?
What assumptions (growth, margins, TAM) justify holding?
What would make you sell?
I am still young, so I need to determine what stocks are worth holding for literal decades until retirement.
AMD: Still undervalued or fairly priced after long term run?
byu/LittleLonelyLovebug instocks
Posted by LittleLonelyLovebug
14 Comments
I sold recently. I’m very risk adverse and would rather miss out on gains than take any losses from here on out.
I had a load of LEAPs I just sold. Definitely will continue up to 600 in the next 2-3 years but not sure how much near term growth it has in it. I’ll probably buy some back if there’s a good entry.
Same question for MU
Look at the P/E ratio
Right now, we are basically pricing all chip stocks for continued uninterrupted exponential growth for several years and that is what you are paying for. If you believe that will happen then yes this is undervalued compared to a few years from now. If you don’t, well then a company with a PE of 136 is quite obviously overvalued.
You have ten shares why even make this post let it ride
bought at $28 and still questioning it.. bro you’re up huge, the thesis is still intact as long as their AI/data center revenue keeps growing into the multiple they’re trading at now
Wouldn’t you like to know?
That’s exactly the kind of multi-year compounding that makes long-term equity investing worthwhile especially when you’re young and have decades ahead
It’ll probably tank after earnings tomorrow since theres been such a massive run up, but I’ll be looking to buy more if it dips. Earnings should provide enough to read between the lines on how well they’re positioned for the CPU bottleneck. I personally still think it’s early and will probably 2x in the next couple years
It’s been advanced money doubler for a while now. At some point, it will change back to being advanced money destroyer
Q3 will be the first true AI products quater where we will see nice revenue gains. Conservative guidance for Q3 will be in Q2 earnings. But since this is AMD, speculations about such guidance will be all Q2, driving SP up. Starting from Q1 2027 we will see blockbuster year over year gains.
GPUs contracted years ahead, server full AMD racks including network are going to market, CPU demand grows ahead of production capacity.
It is very hard to find any period in AMD history when SP fundamentally were stronger when it is now. A lot of fun ahead for sure.
Say this every year when it goes up
Back in the day I bought 1000 shares of AMD at $10 and sold them when they jumped to $20 because I just bought a house and needed new windows…. if I held on my entire house would be getting paid off right now. You have 10 shares, unless you need to spend it, just let it ride