Advanced Micro Devices (AMD) is a company that is based in Santa Clara, California and creates microprocessors for computers. AMD is known worldwide for their performance computer parts and really big with gamers. I recently built a gaming computer for my Son and I used an AMD Ryzen 5 3600x for the processor. He’s very happy that I did because he like to report how fast his video game are.
AMD was founded about 51 years ago and is a massive multinational organization. Last year, their revenue was 9.7 billion with a net profit of roughly 2.5 billion. They have plenty of cash to throw around. Recently, I have started tracking this company as a possible investor because it’s profit-making ability and it’s legendary brand. Currently, AMD stock price closed at $80.19 per share as of today. Over the last year the stock price is up a whopping 46%!
AMD has some hefty competition in the microprocessor market. Intel is one of the largest chip makers in the world with a revenue in 2020 upwards of 77 billion and net profit in the 20 billion range. Although, AMD is able to keep Intel at bay by being a preferred processor by video gamers. Another rival, Nvidia just release a processor to compete with AMD and Intel in the artificial intelligence computing. The release made shares AMD and Intel drop.
I decided to take the plunge and grab some options for $AMD. With the Nvidia release and shares of AMD down, I figured it was the perfect time to snag up some call options. AMD will probably rise back up to where it was holding over the next week or so. Hopefully, my bet pays out! How do you feel about AMD? Do you think my analysis will come out as a gain or loss?