Is Advanced Micro Devices (AMD) stock a good buy?

This is a step-by-step stock review to answer the question, is Advanced Micro Devices (AMD) stock a good buy?

This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.

What are the 4Ms?

• MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
• Meaning – The meaning is the business model and how scalable the revenue streams are.
• Moat – The moat is how the business compares to other companies in the same Sector and Industry.
• Management – The management is the track record of the CEO.

What 4M score are we going for?

• 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
• 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
• 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.

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Table of Contents

The following links will direct you to key topics to help answer the question, is Advanced Micro Devices (AMD) stock a good buy?

1. Advanced Micro Device Company History
2. MOS
3. Meaning
4. Moat
5. Management
6. 4M Score
7. Is Advanced Micro Devices (AMD) stock a good buy?

1. Advanced Micro Devices Company History

When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.

• Founded in 1969: Established by Jerry Sanders and seven colleagues from Fairchild Semiconductor in Sunnyvale, California.
• First Product in 1970: Introduced the Am9300, a 4-bit MSI shift register.
• 1975 Landmark: Launched the Am9080, a reverse-engineered clone of Intel’s 8080 microprocessor.
• Strategic Partnerships: Formed alliances with companies like IBM in the 1980s, gaining momentum in the microprocessor market.
• 1986 x86 Licensing: Acquired rights to produce x86 processors, solidifying a long-term rivalry with Intel.
• Athlon Processor in 1999: Unveiled the Athlon processor, the first to break the 1GHz barrier, setting new performance standards.
• 2006 ATI Acquisition: Acquired graphics company ATI, expanding into the graphics card market.
• AMD Ryzen 2017: Released Ryzen processors, renowned for high performance and value, rejuvenating the CPU market.
• EPYC Server Chips: Launched EPYC processors, gaining significant traction in the data center and server markets.
• Sustainability Commitment: Focused on reducing carbon footprint, enhancing energy efficiency in products.
• Industry Recognition: Consistently recognized for innovation and leadership in semiconductor technology.
• Global Presence: Operates in numerous countries, serving a diverse customer base across various industries.
• Mission Statement: Dedicated to pushing the boundaries of technology to provide cutting-edge solutions and exceptional user experiences.

Advanced Micro Devices (AMD) remains a pivotal player in the tech industry, driving innovation and performance in computing and graphics.

2. MOS (Margin of Safety)

When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.

• Summary: overpriced
• Score: 39/100
• MOS: 1%

To see the most up-to-date Summary, Score, and MOS, please log into Tykr.

3. Meaning

When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.

Here is how Advanced Micro Devices (AMD) makes money:

• Processor Sales: AMD sells CPUs for desktops, laptops, and servers.
• Graphics Cards: They sell GPUs for gaming, professional use, and data centers.
• Semi-Custom Chips: AMD develops custom chips for gaming consoles like PlayStation and Xbox.
• Embedded Systems: They provide processors and GPUs for various industries’ embedded applications.
• Data Center Solutions: AMD offers high-performance server processors such as the EPYC series for data centers and cloud providers.
• Software and Drivers: They offer specialized software, drivers, and support services for their hardware.
• Licensing: AMD earns from licensing its technology and patents to other companies.
• Research and Development: They invest in R&D for advanced technologies, boosting future revenue.
• Collaborations and Partnerships: AMD partners with tech firms to integrate its technology into various products.
• Professional Graphics Solutions: They provide high-performance graphics for design, animation, and research.
• Gaming and E-Sports: AMD serves the gaming and e-sports markets with high-performance hardware.
• Artificial Intelligence and Machine Learning: They develop solutions for AI and ML applications, expanding market reach.

Here are a few of the other companies that Advanced Micro Devices (AMD) has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.

• ATI Technologies
• Xilinx

4. Moat

When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Advanced Micro Devices (AMD) stacks up against other companies.

1. NVIDIA Corporation. (NVDA) – 100
2. Nova Ltd.(NVMI) – 78
3. Axcelis Technologies, Inc. (ACLS) – 78
4. Tower Semiconductor Ltd.(TSEM) – 72
5. Entegris, Inc. (ENTG) – 67
6. Advanced Micro Devices, Inc. (AMD) – 39

To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.

5. Management

When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.

6. 4M Score

All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.

What 4M score are we going for?

• 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
• 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
• 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.

👉 The 4M Score of Advanced Micro Devices (AMD) is 59/100.

To see the most up-to-date 4M Score, please log into Tykr.

7. Is Advanced Micro Devices (AMD) stock a good buy?

Some of the top questions investors can have is Advanced Micro Devices (AMD) stock a good buy or should I buy Advanced Micro Devices (AMD) stock?

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To truly know if Advanced Micro Devices is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.

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