I sold my entire $AMD position at $617.
Not because the business is deteriorating. Quite the opposite.
I believe $AMD is a multi-trillion-dollar company in the making.
But I’m not a fan of holding stocks forever, especially when their valuations become excessively stretched.
AMD has now fallen 25% from its all-time high, but it still has a long way to go before becoming an attractive investment again.
It’s still trading at a forward P/E above 45x, roughly three times $NVDA ’s multiple.
I expect AMD to fall further, and when it does, I’ll happily buy back in.
The fundamentals are impeccable.
The valuation is the problem.
Not because the business is deteriorating. Quite the opposite.
I believe $AMD is a multi-trillion-dollar company in the making.
But I’m not a fan of holding stocks forever, especially when their valuations become excessively stretched.
AMD has now fallen 25% from its all-time high, but it still has a long way to go before becoming an attractive investment again.
It’s still trading at a forward P/E above 45x, roughly three times $NVDA ’s multiple.
I expect AMD to fall further, and when it does, I’ll happily buy back in.
The fundamentals are impeccable.
The valuation is the problem.