Advanced Micro Devices (AMD 0.31%) has come a long way over the years. The semiconductor company had been in the shadow of Intel (INTC -2.74%) for most of its five decades of operations, first as a supplier and then as a competitor. However, it has finally overcome its rival in recent years by developing better chips and expanding into new areas, like artificial intelligence (AI), setting the stage for more growth in the years ahead.
Today, AMD has leading products across several customer segments:
- Data center: AMD develops server central processing units (CPUs), graphics processing units (GPUs), field programmable gate arrays (FPGAs), data processing units (DPUs), and adaptive systems on a chip (SoCs) for data center and artificial intelligence (AI) solutions.
- Client and gaming: It develops CPUs and accelerated processing units (APUs) for notebook and desktop PCs and commercial workstations, as well as GPUs for desktops and notebooks, game consoles, and semi-custom SoCs.
- Embedded: It develops embedded CPUs, GPUs, and other products for the industrial, vision and healthcare, automotive, and test and emulation markets.
AMD's leadership in semiconductors and GPUs, along with its artificial intelligence product portfolio, positions it for growth. That growth potential might have you interested in investing in its stock.
Take a look at how to buy the technology stock and some factors to consider before adding it to your portfolio.
How to buy the stock
How to buy Advanced Micro Devices stock
Here's a step-by-step guide to adding Advanced Micro Device stock to your investment portfolio.
- Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should you invest?
Should I invest in Advanced Micro Devices?
It's imperative to do lots of research before buying any stock. The process might increase your conviction that it's a good investment. However, you could uncover something about the company that leads you to opt against buying shares.
Here are some factors that might drive your decision to buy shares of AMD.
- You believe the semiconductor stock can outperform the S&P 500 over the next three to five years.
- You understand what AMD does and how it makes money.
- You believe AMD can maintain its edge over Intel and gain ground on rival Nvidia (NVDA 2.54%) in the AI market.
- You think AMD's new product launches can reinvigorate growth and improve its profitability.
- You think AMD can capture a significant share of the roughly $500 billion total addressable market opportunity it sees ahead for AI data center GPUs by 2028.
- Adding AMD to your portfolio would make it more diversified.
- You think AMD will grow into its rather lofty valuation as its revenue growth reaccelerates and profits improve.
- You don't need dividend income from your investment.
On the other hand, here are some reasons why you might decide against buying shares of AMD.
- You're not confident AMD can outperform the S&P 500 over the next three to five years.
- You're not exactly sure what AMD does.
- You're worried that rivals Intel and Nvidia will win market share from AMD.
- You already own a lot of tech stocks in your portfolio.
- You're worried that a continued downturn in tech spending could affect AMD's revenue and earnings growth.
- You're concerned that AMD's valuation is high.
- You're in or nearing retirement and need dividend income.
Profitability
Is Advanced Micro Devices profitable?
Consistent profitability has been a problem for AMD over the years. However, the company was solidly profitable in 2025. Its net income was $872 million, or $0.54 per share, on $7.7 billion of revenue in the second quarter. That was a significant improvement from prior quarters. Revenue was up 32% year over year and 3% from the sequential quarter.
AMD has been investing heavily to jumpstart growth by launching new products, which is clearly paying off. It has developed a comprehensive portfolio geared toward artificial intelligence (AI), which could help drive accelerated revenue and earnings growth in the future.
Dividends
Does Advanced Micro Devices pay a dividend?
Advanced Micro Devices had not initiated a dividend as of late 2025. The semiconductor company had no plans to start making dividend payments at the time. Instead, the company retains most of its earnings to fund its operations and continued expansion. Meanwhile, it returns capital to investors through its share repurchase program.
ETFs
ETFs with exposure to Advanced Micro Devices
An alternative strategy to buying shares in AMD directly is to go the passive investing route by buying a fund that holds its stock. One of the most common passive investment vehicles is an exchange-traded fund (ETF).
AMD is a fairly widely held stock. According to ETF.com, 431 ETFs held about 299.3 million shares of the semiconductor company as of late 2025. The biggest holder was the Vanguard Total Stock Market ETF (VTI 0.35%) at about 51 million shares. It was the fund's 30th-largest holding at 0.42% of its total value.
Investors seeking a fund with a larger allocation to AMD could consider the iShares Semiconductor ETF (SOXX 0.81%). AMD was the fund's third-largest holding at nearly 7% of its total value. The ETF is a good way to gain decent exposure to AMD and other top semiconductor stocks.
Stock splits
Will Advanced Micro Devices stock split?
Advanced Micro Devices didn't have an upcoming stock split as of late 2025. However, the company has completed several stock splits throughout its history.
| Split date | Split ratio |
|---|---|
| 8/21/2000 |
2-for-1 Stock Split |
| 8/22/1983 |
2-for-1 Stock Split |
| 10/27/1982 |
3-for-2 Stock Split |
| 10/23/1980 |
2-for-1 Stock Split |
| 10/24/1979 |
3-for-2 Stock Split |
| 10/25/1978 |
3-for-2 Stock Split |
Every share investors bought at AMD's IPO in 1972 would have grown into 27 split-adjusted shares over the years.
Advanced Micro Devices' last stock split was more than two decades ago. Shares have gained in value since its last split, especially in more recent years.
The stock has more than quadrupled since its last split, so AMD could split its stock again in the future to make it even more accessible to investors.
Related investing topics
The bottom line
The bottom line on Advanced Micro Devices
AMD has grown into a global semiconductor leader over the years. It sees much more growth ahead, especially as it begins to capitalize on the emerging AI opportunity, which could reinvigorate its revenue growth and boost its bottom line.
However, AMD faces competition from Nvidia, Intel, and others. So its stock could continue to deliver sluggish returns (as has been the case over the last two decades). Investors need to do their due diligence before buying shares of the semiconductor giant to ensure they understand the risks.
FAQ
Investing in Advanced Micro Devices FAQ
Is Advanced Micro Devices a good stock to buy now?
AMD has a huge growth opportunity. It sees a roughly $500 billion total addressable market opportunity for AI data center GPUs by 2028, which gives the company a long growth runway. It could deliver strong revenue, earnings, and free cash flow growth for years to come.
However, AMD faces much competition from rivals like Intel and Nvidia. There's no guarantee AMD will grow as fast as it hopes or deliver strong returns for shareholders, especially given its higher valuation, so it might not be the most compelling stock to buy right now.
How much does it cost to buy AMD stock?
It cost around than $161 to buy one share of AMD stock in late 2025. However, you can potentially buy shares for less than that at a broker offering fractional shares.
Can I buy AMD shares?
Anyone with a brokerage account can buy shares in AMD. It has been a publicly traded company since completing its initial public offering (IPO) on Sept. 27, 1972. It trades on the Nasdaq Exchange under the stock ticker AMD.
Where can I buy AMD shares?
You can buy shares of AMD at any brokerage or stock trading platform. Here's a list of brokerage account reviews if you're searching for one to open to buy shares of AMD.
