I bought AMD back in 2021 for ~$60 per share. I simply liked their products, I thought they did processors better than Intel, so I bought all I could afford which was about 11 shares.
It’s always performed well for me, but now more than ever it dominates my tiny portfolio. Making up about 80% of my holdings. Now that in the past 2-3 months it’s gone berserk, I’m starting to stress about how to play this. I have always enjoyed the company, I think it’s led well, but holy crap $450 per share? What? There’s no way they maintain that.
Part of the problem is my own in that I really tuned out of making any investments the last 2-3 years due to paying off debts and buying a home. I am ill prepared on how to make an informed decision here (if any decision at all).
I got into AMD at ~$60 per share and now have zero strategy for it. Help.
byu/SectorZed instocks
Posted by SectorZed
32 Comments
take. profit.
De-risk and sell and buy an index fund? If you want to stay in the market..
Hold to infinity
Adjust your portfolio to weigh more heavily towards ETFs and take some profit. Check out SCHG for a good US etf alongside SMH if you want continued exposure to semiconductors and the like
Has your thesis changed? We’re in the middle of an AI bull run. AMD is still very well positioned to benefit from this for years to come. If you need the money, sure, sell parts of it to pay off debt or buy a home,… or just let it run.
AMD is going to at least double from here. Just continue to gain and when it looks like a real dip is inbound or there isn’t much growth left sell off a decent % and diversify
I like to own market leaders…if the competition is chasing them, they’re doing something right even if the stock goes up a lot. AMD and NVDA been that in the AI buildout. Nothing wrong with trimming a little though, especially if it gives you peace of mind, and you use it productively (like paying down debt). If you have anything with a high interest rate like credit cards…taking profit to get that cleaned up is a really good use.
I’m no where near an expert at this stuff but if I were you I’d take some profits, especially if you feel uncomfortable with it being 80% of your port, even if that means only taking a profit equivalent to what you originally put in. I do think however that in the long term AMD has a long way to go, and is still a solid hold (and maybe a buy if it ever pulls back).
Sell half, buy something else, go back to bed.
Do you know how to read charts, grasp momentum, or understand the AI play? Or did you just buy because you liked it? I’m not sweating the details on something bought at $60 where today’s it’s over $400 but keep an eye on SOX as a possible weathervane for when to take profits. Otherwise, if your time horizon is decades, just buy more (with that not needed next decade) when it corrects instead of trying to time the market, which requires all the skills I mentioned and more.
“There’s no way they maintain that.”
Looks like you just answered your own question.
It never hurts to sell enough of a winner so that your initial investment is returned to you in cash that you then repurpose. Let the investment ride on house money.
Congrats man! Now personally, I would trim a small amount and you can use that to explore other options that you may be interested. But if you also just want something for yourself get that profit and enjoy life! Just remember if you do sell you’ll have your capital gains for next tax season so keep that into account.
Sell 2 shares and treat yourself something nice. The rest of it are pure profits from now (set a trailing stop).
Stop loss trail percentage.
hold it, comeback in 10 years. You’ll thank me later.
Sell 10% each leg up and put it in an index fund to derisk.
Get out before the pullback that always follows a surge like this.
No one ever went broke taking profits.
I’ve never understood why people use the phrase “the stock has performed well for me” as if they are talking about the stock like it is a pet or there is an emotional interest.
If you worry about it if your brokerage allows you to buy/sell fractional shares see what you put into it and you can never have a loss on that position. If they don’t sell 2 shares and spend the profit on something for yourself.
Take out your ciat basis- your initial investment amount and let the remainder run up tmfor free. There is no stress that way – no chance to lose principle. You’ll think more clearly afterward.
You have 3 options
Let it ride and put new money into broad market fund or something else not in AI.
Sell half or sell all are the other two with either putting money into broad market or waiting to see where things go or both.
I prefer the first option.
Sell a third, hold the rest? You more than re-claim your original investment, plus lock in a tidy profit. If you are more risk-averse, sell half, maybe 2/3 and keep a third in AMD. That way you won’t kick yourself too hard if your remaining shares continue to increase in value. I have the same issue with some of my semi holdings
Always comes down to the simplest of questions, do you need the money? If you do, trim 75% and reinvest when things are doom and gloom. If you dont actually need the money, id suggest buying more.
You gave no reason to keep the shares in your post so based on all of the information you provided, you should take your $4,400 profit and not look back. This is clearly a lot of money to you and the risk of losing this gain is much larger than the opportunity of it going up higher to you.
If there is any reason to keep the shares you could sell 10 shares, keep your $4,000 profit and still have AMD as around 5% of your portfolio.
Selling 10 of the 11 shares and locking in the gain can help you make a less emotional decision on whether it’s worth keeping the last share.
80%? Damn… Imo, I would redirect 30-60% into qqqm or something. Or even 70%. Btd later but keep a portfolio allocation % cap. Anytime it goes over, reallocate the difference. Mitigate risk.
Take what you invested and let the rest ride for next couple years we just at the start.
Put a good til close stop order at $61 and you should be safe.
Sell enough to get your $60 back and keep rest 🤣
600 by EOY.
I would probably sell half? I did this with ASML and Google when they hit 100% returns for me. Just left profit in them which was half of the position at that point. Helps me sleep and I can maintain some exposure to them. Plus also gives me cash to buy anything else I like
I’m in at $72 a share but just 20 shares. It’s in my Roth. I have a trailing stop on 10 shares set for 20%. The other 10 shares I plan to hold through a few cycles. It could 10x from here in 10 years, you never know. I do this same strategy with many of my big swings (eg bought STX at $80). Good luck to you 👍🏽