Advanced Micro Devices Inc. (better known as AMD) has exceeded all expectations over the past decade. That’s enough to make any investor wish they had actually invested $1,000 in AMD 10 years ago. But in AMD’s case, does past performance indicate future results? Maybe.
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How much is your AMD investment worth now?
If you invested $1,000 in AMD 10 years ago, what would you have gotten today?
Ten years ago, on May 3, AMD closed at $4.12 per share. On that day in 2024, the stock was trading at $150.60. This is an increase in his value of 3,555%.
If you invest at $4.12 per share, you would buy 242.72 shares. These shares would be worth $36,554 today. Don’t dress too dirty.
Why AMD crushed the competition
In the artificial intelligence arms race, AMD has emerged as an early winner. The company makes semiconductors and microprocessors, the necessary components for AI’s computational power.
As of October 2022, AMD was trading around $57 per share. By March 2024, it had climbed to nearly $210, but since that dizzying height, investors’ euphoria has come a little closer to reality.
AMD competes with Nvidia and Intel in the microchip and processor market. Nvidia outperformed AMD in terms of price growth last year, but AMD deftly edged out Intel.
why? Because AMD simply beats Intel in terms of technology. AMD has been steadily stealing market share from its historic rival Intel by developing faster and smaller processors.
AMD’s future
No one knows how deep the AI ​​rabbit hole will go, but AMD has shown promise in this space.
In April 2024, AMD announced a new series of chips specifically designed to power AI processing. We continue to be the front runner in this field.
Of course, that can change at any time. The technology industry is changing rapidly, and companies are constantly overlooking (or over-investing in) potential new technologies. So far, AMD looks poised for success, but there are no guarantees in such a rapidly evolving field.
Consider AMD a rising star to watch. But also note its high price-to-earnings ratio. If the market declines due to a correction, it could be a good opportunity to buy on the edge.
GOBankingRates Details
This article originally appeared on GOBankingRates.com: How much is a $1,000 investment in AMD stock from 10 years ago worth today?
