Friday, January 3rd 2020

AMD Stock Broke All-Time Record for the Company, Peaked at $49.10 per Share

AMD veterans yesterday must've sneakily left their respective offices yesterday for a well-deserved rest and a glass of champagne - and if they didn't, they deserved it. The company yesterday broke their previous all-time stock pricing record achieved way back in June 2000, at $47.50 per share, when it traded at $49.10 per share yesterday.

It's been a long time coming for AMD, and irrespective of any brand loyalty, it certainly pays, as a consumer and as an enthusiast, to see a company that nearly went bankrupt in 2016 - who had to sell and then lease back their own headquarters for a quick cash infusion, spin-off its manufacturing division in a change of strategy that couldn't have been easy on morale - achieve such a colossal feat. Even more impressive this is should you even be considering the blue behemoth the company actually has to contend with - a $260.35B Intel who, by both happenstance and poor CPU execution vision, is being fired upon on all markets by comparative David AMD, today valued at $51.07B. Here's hoping all AMD employees got their well-deserved party and standing ovation from each other. None of them - not even Lisa Su - achieved this alone.
Sources: Market Cap, via Tom's Hardware
Add your own comment

85 Comments on AMD Stock Broke All-Time Record for the Company, Peaked at $49.10 per Share

#1
Mark Little
As a stockholder in AMD, I like to think about what's different this time around.

Last time AMD stock almost hit this mark in 2006, they were at the peak/end of the K8 product stack and Intel was recovering from the Net-burst era. However, Intel had released the core architecture, soon would integrate the memory controller into the CPU and start the tick tock schedule. AMD's response was Phenom and then bulldozer. We all know how that turned out.

This time AMD is keeping to their own advancement schedule of higher IPC and core counts on advanced fab processes each year. Intel is having a hard time with their own fab processes and IPC/core counts have not been improving at the same pace as AMD's Zen architecture.

For these reasons, I believe AMDs stock price will continue to go up and most likely not at a peak that quickly dropped like in 2006 (and previously in 2000).
Posted on Reply
#2
DeathtoGnomes
I had predicted AMD would hit this price last year about 3 years ago when stock was $3, but the damn near daily volatility just made that difficult.
Posted on Reply
#3
64K
The old AMD stubbornly stuck to what wasn't working and damn near bankrupted themselves. Under Lisa Su's guidance the new AMD is doing very well.
Posted on Reply
#4
Dave65
And quite a few said this would not ever happen for AMD...
Posted on Reply
#5
xkm1948
EPYC based server are finding homes in a lot of heavy weight players. All the new compute nodes from our institution are EPYC based. It is a big market, no wonder AMD stock is doing amazing
Posted on Reply
#6
phanbuey
Mark Little
As a stockholder in AMD, I like to think about what's different this time around.

Last time AMD stock almost hit this mark in 2006, they were at the peak/end of the K8 product stack and Intel was recovering from the Net-burst era. However, Intel had released the core architecture, soon would integrate the memory controller into the CPU and start the tick tock schedule. AMD's response was Phenom and then bulldozer. We all know how that turned out.

This time AMD is keeping to their own advancement schedule of higher IPC and core counts on advanced fab processes each year. Intel is having a hard time with their own fab processes and IPC/core counts have not been improving at the same pace as AMD's Zen architecture.

For these reasons, I believe AMDs stock price will continue to go up and most likely not at a peak that quickly dropped like in 2006 (and previously in 2000).
Long term, the formula is the same: AMD will be reaching the end of the Zen product stack in a year, Intel is recovering from their 14nm+++++++ (+?) era, and there are rumors about Keller's new stacked/ultra-dense designs swirling around. Intel will want a replay of 2006 in 2021 (and I feel very old saying that).


https://hexus.net/tech/news/industry/132254-moores-law-dead-insists-intels-jim-keller/
Posted on Reply
#7
R0H1T
phanbuey
Long term, the formula is the same: AMD will be reaching the end of the Zen product stack in a year, Intel is recovering from their 14nm+++++++ (+?) era, and there are rumors about Keller's new stacked/ultra-dense designs swirling around. Intel will want a replay of 2006 in 2021 (and I feel very old saying that).


https://hexus.net/tech/news/industry/132254-moores-law-dead-insists-intels-jim-keller/
You are forgetting one key thing from back then - process advantage. Intel was anything between a node to 3 ahead of AMD. The gap was at its widest with FX, although Phenom II wasn't that bad. Here the situation is nearly diametrically opposite!
Posted on Reply
#8
trparky
Now if only I had bought a thousand shares back when it was trading under $5 a share, I could multiplied my money like mad.
Posted on Reply
#9
thesmokingman
Mark Little
As a stockholder in AMD, I like to think about what's different this time around.

Last time AMD stock almost hit this mark in 2006, they were at the peak/end of the K8 product stack and Intel was recovering from the Net-burst era. However, Intel had released the core architecture, soon would integrate the memory controller into the CPU and start the tick tock schedule. AMD's response was Phenom and then bulldozer. We all know how that turned out.

This time AMD is keeping to their own advancement schedule of higher IPC and core counts on advanced fab processes each year. Intel is having a hard time with their own fab processes and IPC/core counts have not been improving at the same pace as AMD's Zen architecture.

For these reasons, I believe AMDs stock price will continue to go up and most likely not at a peak that quickly dropped like in 2006 (and previously in 2000).
I would just add that Nehalem was the first integrated memory controller and that was 2008 iirc. You're also ignoring all the illegal tactics that Intel employed to fight AMD. More than any tech they released, the freezing out of AMD sales to OEMs led to AMD's demise. This time, I doubt Intel would be making as many back end deals as they did in the 2000s.
Posted on Reply
#10
Reaperxvii
I sold my stock at 42.71 to help get us in line to buy a house, I've held off buying any more simply because I'm weary how hard the stock market will tank once the next recession hits.
Posted on Reply
#11
ssdpro
Man, I felt things would get good back at 12 bucks/share and bought in. At the time I thought if it made it to 25 in 2 years I would be thrilled. Kudos to those that bought in back at 5 bucks... mega gonads and courage. A few more years and we have bonafide competition from two nearly equal companies.
Posted on Reply
#12
thesmokingman
ssdpro
Man, I felt things would get good back at 12 bucks/share and bought in. At the time I thought if it made it to 25 in 2 years I would be thrilled. Kudos to those that bought in back at 5 bucks... mega gonads and courage. A few more years and we have bonafide competition from two nearly equal companies.
At 2.15 and 3 bucks for me. :D
Posted on Reply
#13
suraswami
Thought about buying AMD stock when they were around $6, thinking thinking.. stock went to $12..and finally bought it at $15, 2 yrs later sold it when it was at $35. Should have kept it:mad:

Happy for AMD for bouncing back.
Posted on Reply
#14
TheinsanegamerN
There are several major debt bubbles looming right now.

the college debt bubble is getting more unmanageable by the year. Sooler or later that thing is gonna blow.
Credit card debt is peaking again
Sub prime car loans are at an all time high
Consumer debt is piling up again

I've started hearing those "if you owe X in debt" and " No credit, no problem" commercials again, just like I did before 2008. Now as for housing, in the US there isnt much of a problem outside of packed costal cities, but China is another deal entirely. The chinese contruction industry has been maintained for years by massive government investment, producing unsustainable growth resulting in ghost cities and ghost highways all over china. They have started to run out of local projects, hence the hard push for the Belt Road inititive, those chinese contruction companies are all doing business in africa now. If china's economy slows down (and many reports have shown them to be increasingly inflating their GDP numbers in recent years), the contruction industry will pop, nd the rich chinese business owners will frantically be selling their assets, mainly in the form of western property.

Not to mention the obvious bubble: the techbro market. Theranos was a total scam, WeWork burnt though valuation like tissue paper, and now one of Uber's co-founders is bowing out. For years cheap loans and VC funding have been fueling huge companies that have created a gig economy where the host company manages to never make money, and as more investments come due, I can imagine funding drying up and many of these big gig comapnies going belly up, which creates a major problem for lower and lower middle class americans, and could trigger a major recession. Doubly so if the DoJ finally cracks down on big tech monopolies.

A collapse of the chinese housing market may create a worldwide recession, just as the US market did in 2008, and I'd place bets on that happening soon. It wont be as bad as 2008 (for us anyway), but only a fool will think that a recession is inevitable for another decade, that would be the single longest bull run since the 1950s/1960s.

I am in the same boat as many here, I had $10K in the bank when AMD was $1.67 a share, and god I wish I had put $2-3K into AMD at that time, if not the whole $10k. I was worried AMD would finally go bankrupt. As it stands, I put $700 into AMD at $9 a share, and I'm going to be selling those shares this weekend and next week (and in turn, will use that cash if the rumored navi 21 is as good as it sounds). It's been a good run, and I dont doubt AMD will continue to make good money, but I see tech stocks falling in the next year or two, and I'm getting out while the ROI is good.
Posted on Reply
#15
64K
I remember when AMD stock went down to $1.60 a share. There was speculation that their share price would continue to drop below $1 which would cause them to be delisted from NASDAQ. They were heavily in debt with seemingly no way to pay it off because they were going further into red ink by the hundreds of millions yearly. The entire company was valued at 1/4th of what they paid for ATI back in 2006. Several major Financial Analysts Sites were saying that it looked like bankruptcy was inevitable. People worried that AMD wouldn't be around to provide driver support stopped buying AMD GPUs. Their discrete GPU market share dropped to 20%. They split off their graphics division into RTG causing speculation that they might try to sell it to stay afloat. They had no other assets left to sale. They had already sold their Fab. They had even sold the building where their offices were and leased them back. Their CPU market share was down. Things looked bad. Really bad.

It would have taken balls of steel to invest in AMD at that time but for any that did they have seen a 3,000% increase in their investment in just a few years. That is incredible. It really is amazing to see a company rise from the ashes like AMD has done. I have a lot of respect for Lisa Su for this.
Posted on Reply
#16
Mats
thesmokingman
I would just add that Nehalem was the first integrated memory controller and that was 2008 iirc.
That's what he said, basically.
Mark Little
Intel had released the core architecture, soon would integrate the memory controller into the CPU and start the tick tock schedule.
Posted on Reply
#17
thesmokingman
Mats
That's what he said, basically.
Soon as in 7 years later? :rolleyes:
Posted on Reply
#18
Mats
thesmokingman
Soon as in 7 years later? :rolleyes:
What do you mean? Where did you get 7 from?

2008 - 2006 = 2
Posted on Reply
#19
thesmokingman
Mats
What do you mean? Where did you get 7 from?

2008 - 2006 = 2
Your dates are all wrong. AMD's IMC in Hammer was known since 2001, released 2003, aka K8.
Posted on Reply
#20
R0H1T
AMD - first to dual core, AMD64, IMC, HyperTransport, IF, taking IMC off die for MCM etc.

You can add other achievements, but these are the major ones that come to mind.
Posted on Reply
#21
thesmokingman
R0H1T
AMD - first to dual core, AMD64, IMC, HyperTransport, IF, taking IMC off die for MCM etc.

You can add other achievements, but these are the major ones that come to mind.
Only one to make a working x64 isa that is backward compatible, that's a pretty big one!@#$ Doh, you listed AMD64, missed it. I'd just reinforce that it was huge.
Posted on Reply
#22
R0H1T
Yes well if Intel didn't have that cross licensing agreement they'd have sunk with the TItanic, they should thank their lucky stars AMD saved the day for them.
Posted on Reply
#23
Mats
thesmokingman
Your dates are all wrong. AMD's IMC in Hammer was known since 2001, released 2003, aka K8.
I never mentioned any of that. We were both referring to Mark Littles quote, or so I thought.

I thought you were correcting him that the IMC didn't come with the first Core 2 in 2006. I just pointed out that he wrote soon, as in later than 2006.
Posted on Reply
#24
division2Ubisoft
no matter what. few months ago i buyed r5 3600 and today R7 3700X . who is that intel guy? is anyone know him?
Posted on Reply
#25
Mats
R0H1T
AMD - first to dual core, AMD64, IMC, HyperTransport, IF, taking IMC off die for MCM etc.

You can add other achievements, but these are the major ones that come to mind.
First dual core is not true. Intel beat AMD to it and launched Pentium D one week earlier. The fact that Pentium D was hot running and inferior doesn't change that.. :D
Posted on Reply
Add your own comment