Down 24% In A Month, Is AMD A Good Bet After The Coronavirus Threat Passes?

by Trefis Team
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On Monday, March 16, the stock markets fell 12%, the biggest sell off since 1987, and one of the biggest drops of all time. A rapidly increasing number of Coronavirus cases worldwide has caused mounting concerns of a global economic slowdown.
Advanced Micro Devices (NASDAQ: AMD) stock fell 12% on Monday and is down by a total of almost 18% since early February, considering the impact that the outbreak and a broader economic slowdown could have on the chipset and processor manufacturing industry.

However, going by the trends seen during the 2008 economic slowdown, it’s likely that AMD’s stock could bounce back strongly and potentially outperform the market as the crisis winds down.
In our interactive dashboard analysis, 2007-08 vs. 2020 Crisis Comparison: How Did Advanced Micro Devices Stock Fare Compared with S&P 500?, we take a look at how the company’s stock reacted to the economic crisis of 2008 and compare its performance with the S&P 500.

AMD Stock vs. S&P 500 Over 2020 Coronavirus/Oil Price War Crisis

  • Between March 9th and March 16th, AMD’s stock has declined by over 20% and is down by about 18% since February 1, after the WHO declared a global health emergency.
  • Over the same period, the S&P 500 has declined by almost 20% and is down over 28% since February 1, after the global health emergency was declared by the WHO.
  • We also compare the current coronavirus crash to 4 other market crashes here.

To see how Intel, a close competitor, performed over the same period, view our interactive dashboard: 2007-08 vs. 2020 Crisis Comparison: How Did Intel Stock Fare Compared with S&P 500?

AMD Stock vs S&P 500 Over 2007-08 Financial Crisis

  • AMD’s stock declined from levels of around $13 in October 2007 (the pre-crisis peak) to levels of around $2 in March 2009 (as the markets bottomed out) and recovered to levels of almost $10 in early 2010.
  • Throughout the crisis, AMD stock declined by as much as 83% from its approximate pre-crisis peak. This marked a decline faster than that of the S&P which fell by around 51%.
  • However, the stock also recovered relatively faster, rising by 344% between March 2009 and January 2010. In comparison, the S&P rose by about 48% over the same period.

For more detailed charts and a timeline of the 2008 and 2020 crisis for different stocks, view our interactive dashboard analyses on coronavirus.

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