As the world shut down due to COVID-19 pandemic and subsequent lockdowns, more people had to stay at home and work remotely. This, in turn, caused an explosive surge in demand for desktop computers, laptops, smartphones, tablets, and other devices with Internet access. All the mentioned devices rely on one or several microchips, also known as semiconductors, which function as the brains of our electronics. Today, companies producing semiconductors do not have enough manufacturing capacity to meet soaring demand which resulted in an unprecedented global shortage of chips.

Notably, this global chip crisis has mostly affected the users of electronics and producers of computers, cars, smartphones, and other smart home appliances. Some manufacturers had to halt production and delay the delivery of new models. On the other hand, semiconductor companies appear to benefit from the current situation as computer chips are sold out at shockingly high prices, thus exacerbating the acute shortage of components among other customers.

At the same time, chipmakers are taking full advantage of the current crisis and selling semiconductors right from the factory, while cutting costs on support, advertising, delivery, and logistics. Today, we will tell you about one of such global chip manufacturers who benefited from these circumstances. We are talking about Advanced Micro Devices. Since the WHO declared the Covid-19 pandemic and the world faced a tight supply of microchips, AMD securities have skyrocketed by 234.00% and keep climbing to this day.

History of the company

Advanced Micro Devices (AMD) is a global semiconductor company that specializes in producing chipsets, microprocessors, graphics processing units, motherboard chipsets, game console products, and technologies for the commercial and consumer markets.

Advanced Micro Devices was founded in 1969 by American businessman and engineer Jerry Sanders. In the fall of 1969, the company introduced its first product - the Am9300, a 4-bit shift register. A year later, AMD manufactured its first proprietary product, the Am2501 logic counter which was highly successful thanks to its affordability.

More than 50 years later, AMD keeps increasing its presence in the market of processors, laptops, desktop computers, and servers. The company is the second-largest supplier of microprocessors in the world and the biggest competitor of another technology giant Intel.

Shares of Advanced Micro Devices

AMD securities are listed on the Nasdaq Stock Exchange and are available for both retail and institutional investors.

The company went public in 1973 with the initial price of $2 per share. By the end of the year, the value of AMD stock increased to $20.56. Almost 30 years later, in October 2002, one AMD share was trading at just $3. Only in 2020, the company's stock saw an impressive take off to more than $50 per share. Since then, the price of AMD stock has been steadily rising to reach its record high of $92.22 in February this year.

There are two ways an investor can gain profit from AMD shares:

1. Buy AMD securities on the stock exchange through a broker. This option is more suitable for investors who prefer a long-term approach.

2. Trade CFDs on AMD stock which is widely offered by many brokerage firms. This is a good choice for those who prefer short-term investment. This trading strategy implies opening short positions and gaining profit when the price goes either up or down.

Investors can buy the shares of Advanced Micro Devices on US and European stock exchanges where they are traded under the AMD ticker symbol. However, retail investors can gain access to the stock market only through an intermediary company.

For this, you need to open a trading account with a broker. The procedure will not take long. Thus, you will need only 3 minutes to register an account with InstaForex.

The minimum trade size is 1 lot which equals 1 share. To calculate your potential profit, use the Trader's calculator on InstaForex website.

Then you are free to trade the shares of Advanced Micro Devices or any other popular companies. A widely popular MT4 trading platform by InstaForex will become your best assistant in trading stocks. Here, you can open a trade in just a few clicks.

To develop a successful trading strategy, a beginning investor needs to get basic online training and study the key methods of market analysis. InstaForex has created a special Training course for beginners. It will give you an insight into the principles and secrets of successful trading in the global financial markets.

Before buying AMD securities, you should consider the following:

1. the state of the global economy: a collapse in the market will definitely result in depreciation of the stock value, while an overall positive sentiment will facilitate its growth.

2. outlook for the technology sector. Today, rising inflationary pressures weigh on the high-tech industry because investors tend to shift their attention to companies with stronger performance and those who will be the first to benefit from the economic recovery.

3. AMD’s financial performance. As a rule, the shares of Advanced Micro Devices gain in value after strong quarterly earnings reports.

4. Key clients of the company: big contracts for the delivery of semiconductors ensure long-term support for the company’s quotes.

You can monitor the quotes of AMD shares in real time on InstaForex website.

Dividends

Advanced Micro Devices do not pay dividends to its shareholders. The company spends all its profit on developing innovations and producing new items. That is, the main way investors who hold AMD stock in their portfolios can gain profit is trading on price changes, both up and down.

Conclusion

The coronavirus pandemic that broke out in 2019 and an unprecedented shortage of semiconductors allowed Advanced Micro Devices to enter the list of leaders in the high-tech industry. This makes the company an attractive option for investment and trading.

Along with high liquidity, the shares of the chip producer are also characterized by high volatility, especially amid current news background. At present, AMD’s revenue and profit demonstrate a steady rise, while the company's stocks are considered relatively stable and insensitive to market fluctuations.