AMD is one of the hottest tech stocks on the market right now. The company’s shares have nearly tripled in value since the start of the year. Even better, analysts are expecting even more upside to come.
That’s because AMD has done almost everything right in recent years. The computer chip maker has surpassed its rivals in the quality and sophistication of its processors, expanded its market share, and crushed analysts’ earlier expectations.
With so much momentum behind AMD, many UK investors and traders are looking to buy shares of this company. In this guide, we’ll show you how to buy AMD shares online in the UK and explain why AMD stocks are worth owning in your portfolio.
AMD shares trade on the NASDAQ stock exchange in the US. In order to buy AMD shares in the UK, you will need an online stock broker that offers shares of this company. The good news is that since AMD is such a popular stock, it’s carried by dozens of top UK brokers.
It’s important to choose your online broker carefully. Your brokerage will determine whether you can buy shares outright, trade CFDs (contracts for difference), or both. It will also set the prices for trading, which can make a big impact on your profits over time. You should also consider your broker’s trading platform to make sure it has all the tools and features you need.
To help you pick the right broker, let’s take a closer look at two of our top recommended brokers for buying AMD shares in the UK.
eToro offers stock trading on more than 800 shares from the UK, US, and numerous other countries around the world. In addition, this broker offers ETF trading so that you can get exposure to AMD shares through a fund. eToro allows you to buy shares outright or trade CFDs, depending on which instrument better suits your strategy.
One of the best things about eToro is that all trading is 100% commission-free. You don’t pay anything to trade except a small commission, which is far lower than the industry average for most stocks. eToro is also light on account fees, with no deposit fee and an inactivity fee that doesn’t kick in for 12 months. The only fee to worry about is a £5 withdrawal charge, although this is relatively inexpensive.
eToro offers a rich trading platform that’s complete with a social trading network. You can see what shares other traders are buying and selling, gauge market sentiment around AMD, and learn from other UK traders. Plus, eToro supports copy trading so that you can automate your portfolio based on the trades of experienced professionals.
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Plus500 – Trade AMD CFDs with an Advanced Platform
If you’re interested in CFD trading around AMD shares, Plus500 is one of the top UK brokers for the job. This CFD broker offers 0% commissions, extremely tight spreads, and low account fees to ensure that you keep nearly all of your profits. Plus500 also has a wide selection of UK and US shares and ETFs, so you can trade AMD’s tech peers like Amazon and Tesla.
We especially like Plus500 because of its advanced trading platform. With this broker, you get access to a user-friendly charting interface complete with nearly 100 technical indicators and dozens of drawing tools. It’s easy to annotate charts, explore rapid price movements, and analyze trends over time. Even better, Plus500’s charting software is available through a mobile trading app.
Plus500 also offers helpful trading tools like price alerts, an economic calendar, and a news feed. You can set alerts on your desktop to be pushed to your smartphone, making it easier to stay on top of trades when you’re on the go.
72% of retail investor accounts lose money when trading CFDs with this provider.
Whether you’re investing in AMD or similar companies like Micron Technology, it’s always important to do your homework. Analysts are generally bullish about AMD shares, but that doesn’t mean you should blindly invest in this company. It’s extremely important to do your own research into AMD shares in order to determine if this stock is as strong a pick as it seems.
To help you get started, let’s take a closer look at AMD – what it does, why its share price has been on a tear this year, and where it could go in the future.
AMD, or Advanced Micro Devices, was founded in 1969, just one year after rival chip maker Intel. For most of its history, AMD played second fiddle to Intel. It was always a step behind in engineering newer and better computer chips, and it never claimed nearly the same market share. The difference became especially stark after the introduction of PCs, which were dominated by Intel processors rather than AMD processors.
In recent years, though, Intel’s star has fallen and AMD’s has risen. The company sold off its chip foundries in 2008, choosing instead to outsource production to third-party manufacturers like Taiwan Semiconductor Manufacturing. That has allowed AMD to cut costs and focus purely on chip development, and it has made huge strides in building microprocessors and graphics processors. In several areas, AMD is now several years ahead of Intel in terms of technological development of its chips.
AMD went public early in its history, in 1972, on the NASDAQ exchange. The company issued shares for $15.50 each (today worth $0.57 each after a series of stock splits) and raised $7.5 million through the IPO. The share price peaked at nearly $45 per share in 2000, at the height of the tech bubble, before dropping down to a low of $6 per share by 2002.
As recently as 2016, AMD shares were trading below $2 per share. The price climbed to $20 per share by the end of 2018, and then doubled to nearly $45 per share by the end of 2019. Over the course of 2020, the share price has nearly doubled again, from $45 per share to over $85 per share.
AMD has never paid out a dividend and is not expected to in the future. This is not unusual for tech companies, which are rarely on the list of top dividend stocks.
Should I Buy AMD?
AMD shares have quadrupled in value over the past two years. But according to most analysts, this company has plenty of upside left for investors. So, what’s so great about AMD?
For most of its history, AMD was behind its rival Intel when it came to chip technology. But that situation has reversed itself in recent years.
AMD is now several years ahead of Intel when it comes to making 7 nanometer processing units. Intel has estimated that it won’t reliably produce 7 nm chips until 2022, and in the meantime the company is continuing to struggle to make less sophisticated 10 nm chips.
By 2022, experts estimate that AMD could be making 5 nm or even 3 nm chips. That would give the company a huge technical superiority to leverage. Essentially, any cutting-edge computers would have to use AMD processors over Intel processors. This is a huge deal for AMD, especially since its chips are becoming increasingly essential for data centers and servers.
At the start of 2020, analysts predicted that AMD would bring in around $6.7 billion in revenue for the year. Since then, that estimate has been revised dramatically upward – to around $9 billion in revenue. That change has been one of the key catalysts behind AMD’s share price rally this year.
On top of that, AMD is expected to continue growing. Analysts expect 50% earnings growth in 2021 and 23% revenue growth. At a time when most businesses are struggling, those numbers are almost hard to believe.
In terms of market share, AMD should only continue eating away at rivals like Intel and Nvidia. Data centers are increasingly using AMD chips because of their technical superiority, and both Microsoft and Sony’s new gaming consoles use AMD chips. Expect AMD to move increasingly into the PC market, too, as its high-end chips become the standard for high-end business computers.
Step 3: Open an Account and Deposit Funds
Want to get in on AMD shares before they rise any higher? Then you need a brokerage account to buy shares today. We’ll show you how to open an account with eToro, which offers 100% commission-free trading for AMD shares.
To start, navigate to eToro’s website and click the ‘Join Now’ button. Enter a username and password for your account, then fill in details like your name, email, and phone number. You will also need to verify your identity to comply with government regulations. Simply upload a copy of your driver’s license or passport along with a copy of a recent utility bill or bank statement.
Before you can start trading, you need to deposit funds to your new account. eToro accepts a wide variety of payment methods, including:
- Debit card
- Credit card
- UK bank transfer
- Wire transfer (extra fees apply)
You must deposit a minimum of £140 the first time you make a deposit to your account. After that, you can deposit however much you want.
With your eToro account funded, you’re ready to buy AMD shares. From the dashboard, enter ‘AMD’ in the search bar at the top of the page. Click ‘Trade’ when AMD appears in the drop-down menu to open a new order form.
The order form allows you to tell eToro how you want to buy shares. Enter how much money you want to invest in AMD – you can spend any amount over £40 regardless of AMD’s share price since eToro allows you to buy fractional shares. You can also enter a stop loss or take profit level for your trade, or apply leverage up to 5:1 if you are trading CFDs.
When your trade is ready, click ‘Open Position’ to buy AMD shares.
AMD stock has been on an incredible rally over the past two years. While that momentum is exciting, it can also make investors fearful that the stock is overvalued. However, all signs point to AMD shares moving higher and staying there.
Importantly, the price movement isn’t because of hype. AMD has executed on its strategic plan and stolen a massive amount of market share away from rivals like Intel. As it remains several years ahead of Intel in developing newer, smaller processing chips, it is likely to take even more market share and become the chip maker of choice for PCs and data centers.
AMD’s success has been reflected in the company’s bottom line. Analysts revised their expectations for the company’s sales heavily upward for both this year and next year, and earnings are expected to jump 50% in 2021. So, AMD isn’t just succeeding on paper – the company is capitalizing on its advantages and turning its advanced chip technologies into measurable gains in profit.
How high can AMD shares climb? Many analysts have put a price target of $100 per share on the stock, which represents a 15% gain from the current share price. While there’s no guarantee that the price target will be reached, it signals the enthusiasm behind AMD shares and a strong belief from experts that this is a stock worth owning.
AMD has spent the past several years developing newer, better computer chips and muscling ahead of rivals like Intel. That hard work is paying off now, as AMD’s market share is skyrocketing and it has a moat of several years’ worth of research and development.
While AMD shares are selling for a premium right now – the stock has quadrupled in value over the past two years – there are plenty of reason to think that the share price will continue to climb. Analysts and industry experts are very excited about AMD shares, and some are predicting a more than 15% gain over the next year alone.
Ready to buy AMD shares? Sign up for an eToro account today to buy shares with no commission!
eToro – Best UK Stock Broker with 0% Commission
67% of retail investor accounts lose money when trading CFDs with this provider.
Looking to invest in other tech shares? Check out the companies below.
- Micron Technology