These stocks had all benefitted from multiple expansion during their upwards runs, and they are now consolidating while it seems like the market wants to wait for their business growth to merit more share price gains. This underperformance over the last couple of months went hand in hand with a similar underperformance that can be seen in many other high-growth market darlings from 2020 and before, such as Tesla ( TSLA), Netflix ( NFLX), or Zoom Video ( ZM). Over the last six months, AMD is down 13%, while the broad market gained 15%. In the more recent past, however, the performance has been less stellar: AMD does not pay any dividends, but massive price increases over the last five years have nevertheless made AMD a great investment for those that entered positions a couple of years ago - over the last five years, AMD rose by a massive 1,700%. Those that bought AMD a couple of years ago have gotten used to a very strong performance from their investment, not only when it comes to AMD's operational progress, but also when it comes to share price gains. AMD should be able to grow its profits at an attractive pace in the coming years, but equity price gains may be less pronounced, as rapid ongoing growth is already priced in at current valuations. The stock has, over the last couple of years, performed quite well, although shares have been moving sideways for the last couple of months. ( NASDAQ: AMD) is a fast-growing semiconductor company that is gaining share in attractive markets such as data centers. JHVEPhoto/iStock Editorial via Getty Images Article ThesisĪdvanced Micro Devices, Inc.
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