AMD: A VR Stock To Consider
A lot of companies are realizing that virtual reality may be a potential new goldmine. Digi Capital, a tech firm, has predicted that virtual reality will be a $30 billion industry by the year 2020. Goldman Sachs predicted that virtual reality will be a $80 billion industry by the year 2025.
Lots of investors are looking for companies to invest in that are creating VR software or VR hardware. Facebook is a clear option as they sell the Oculus Rift headset.
AMD shares have dropped almost 90% over the past 10 years mainly because of the loss of x86 chips to Intel and high-end graphics cards to Nvidia. However, shares have come back over 50% throughout the past year.
AMD points to virtual reality a large part of their new strategy. Its APUs work with CPUs and GPUs on a chip that puts them as a great all in one solution for devices that needs high-end graphic processing power. The company has also been working with computer manufacturers to develop an “Oculus Ready” computer that will work with Oculus Rift games.
AMD’s stock trades at 0.7 trailing sales which is lower than the industry average P/S ratio which is 1.9.
The virtual reality market still has a lot to prove, so it’s hard to say if AMD will end up being a good investment or not, but it’s definitely worth checking out. Use your best judgement.