Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.
AMD’s Big Decade
One stock that had plenty of highs and lows over the past decade is semiconductor play Advanced Micro Devices, Inc. (NASDAQ: AMD).
The rise of smartphones, online gaming, cloud computing, cryptocurrency and other innovations created a boom in semiconductor demand over the past decade. In addition, AMD was in the right place at the right time to capitalize on missteps by Intel Corporation (NASDAQ: INTC) and gain CPU market share as well.
In a big year for the S&P 500 in 2019, AMD was the best stock of all, gaining 139% due to booming demand in the high-end PC and server chip markets.
For AMD investors, the 2010s were like a tale of two decades.
AMD shares started the 2010s trading at around $9.70. By mid-2015, the stock had hit its low point of the decade, dropping all the way to $1.61 as a crash in GPU demand hit the semiconductor industry hard. Fortunately, by the end of 2016 AMD shares were making new decade highs above $10 per share.
After spending most of 2017 and the first half of 2018 in a trading range between $10 and $15, AMD hit $20 and then $30 by the end of 2018 as headlines about AMD gaining CPU share from Intel boosted the stock.
2020 And Beyond
AMD gained momentum in 2019 as Intel’s issues persisted, and the stock hit its decade high of $52.81 on Friday ahead of earnings.
The popular semiconductor stock was a top overall performer over the past decade. In fact, $100 worth of AMD stock in 2010 would be worth more than $522 today.
Looking ahead, analysts expect a pullback for AMD in 2020. The average price target among the 32 analysts covering the stock is $41.50, suggesting 17.6% downside from current levels.