Monday, November 8th 2021
AMD Stock Jumps 10% on Monday, Propelled by Meta (Facebook) Deal
AMD on Monday made several major announcements covering different parts of its enterprise product roadmap. These included the 3rd Gen EPYC "Milan-X" processors with 3D Vertical Cache memory; Instinct MI200 CDNA2 compute accelerators, and announcements related to next-generation "Zen 4" based EPYC "Genoa" and "Bergamo" processors that come with core counts as high as 128. The company's stock rallied up to 12%, closing up 10%, which left many in the tech community scratching their heads. It turns out that the AMD-Meta deal has a profound impact on investors.
Meta, the holding company of Facebook covering all its businesses, aspires to be a major cloud solutions provider on par with Microsoft Azure, AWS, and Google Cloud. The deal could see Meta buying large stocks of AMD processors and compute accelerators to drive its next-gen server infrastructure. Sales of enterprise processors doubled year-over-year for AMD, and EPYC processors now account for 20% of the company's revenues.
Meta, the holding company of Facebook covering all its businesses, aspires to be a major cloud solutions provider on par with Microsoft Azure, AWS, and Google Cloud. The deal could see Meta buying large stocks of AMD processors and compute accelerators to drive its next-gen server infrastructure. Sales of enterprise processors doubled year-over-year for AMD, and EPYC processors now account for 20% of the company's revenues.
17 Comments on AMD Stock Jumps 10% on Monday, Propelled by Meta (Facebook) Deal
Investors says otherwise
Even if they were to be broken still not much would change for the resulting companies.
but god forbid we mention bad news for NV.
It's the trio:
Facebook
Instagram
Whatsapp
with 3+ billion user reach.
Only google is somewhat bigger, but not by much.
AMD already coined Twitter with last year's EPIC.
But Twitter is small in comparison (only about 200 million daily users).
If you were wondering, why our Californian Overlords lashed out against Parler, during Trump Revolt(tm): he alone had 65 million followers. Had major part of them jumped to Parler, Twitter would get a major competitor.That's actually an interesting point, when watching stock price over the last year.
INTC grew but slightly.
AMD went bananas.
NVDA is overheat as heck.
Some here can now take down their Ruby posters.
While I encourage everyone to invest, I would like to remind you that most investing in individual stocks will end up losing money, so I discourage investing in individual stocks on general basis, as most will end up making bad decisions over time. The sensible investment for non-experts is in investment funds, a decent index fund can typically do 10% annually (actively managed funds can do way better than that), so that should be the baseline you compare your investment skills to. Can you consistently beat that over time? (I can't)
My point is, by the time you hear about a stock going great in the news, it's usually too late to get huge returns, so I hope that you and others don't get tempted to buy AMD stock now. The time to buy AMD stock was like you said 5+ years ago, because smart investors buy stock when it's undervalued, and they sell stock when the stock starts to skyrocket, not at the peak as many think. Now that the stock price is close to or already passing the company's intrinsic value, you get into speculation territory, and the smart investors will start to sell, and the "fools" will take over.
So you might regret not buying AMD stock back then, but even if you had great success on one stock, would you honestly be able to replicate that every time? ;)