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Investing in Technology. Wen Haofu, Miles 2008801462 Computer Engineering University of Hong Kong. Outline of the Presentation. Explain why I prefer investing in technology and share my views and experiences during the past several months Analyze TWO technology companies and their stocks
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Investing in Technology Wen Haofu, Miles 2008801462 Computer Engineering University of Hong Kong
Outline of the Presentation • Explain why I prefer investing in technology and share my views and experiences during the past several months • Analyze TWO technology companies and their stocks • Discussions are extremely welcome
Many students majoring in Engineering or Science, like me • New-comers • Sluggards in market • Risk-averse
Why invest in technology? • Good “appetizer” for new-comers in investment from engineering or science fields • Relatively Lower Risks to those investors with lots of knowledge on that industry • Suitable for relatively Longer term investments and doesn’t require being taken too much care of. • Profits are good
Advanced Micro Devices (AMD) • NYSE: AMD • Founded on May 1, 1969, as a producer of logic chips and entered the RAM chip business in 1975 • World’s second-largest supplier of microprocessors after Intel • Total Assets (2009): US$ 9.08 Billion • Total Equity (2009): US$ 648 Million • Net Income (2009): US$ 293 Million
Eyefinity Technology in AMD • The Eyefinity Technology developed by Advanced Micro Devices (AMD), to be installed in AMD’s next-generation DirectX 11-CompliantGrapics Cards, which could give its customers “surround-sight” experiences through connecting multiple monitors to a single PC and implementing them separately or as one “big” monitor.
Buying AMD stocks • Good performances during the past few months, but NOT recommended to be bought now • Intel is marching into the GPU market, future performances of AMD could not be predicted before some “overwhelming” technology in chipset could be developed by AMD • AMD almost NEVER pays dividends. It did only once in its life (0.02% on April 27, 1995)
Intel • NASDAQ: INTC • Founded on July 18, 1968, as Integrated Electronics Corporation • The world’s largest semiconductor chip maker, with its processors found in most Personal Computers (PC) • Total Assets (2009): US$ 53.095 billion • Total Equity (2009): US$ 41.704 billion • Net Income (2009): US$ 4.369 billion
Hyper-threading Technology in Intel • First introduced in 2002, and has been developing very fast ever since in various Intel’s products • Hyper-threading means, to make it simple, to manipulate threading in hardware level in stead of Operating System (OS) level • Around a year ago, rumors came out that Intel has make great improvements in improving the energy efficiency of HT technology • Months ago, Intel’s Core i3/i5/i7 series came to market
Buying Intel stocks • Recommended buying. Performance of the stock is very, very good recently, and has been enjoying its historically biggest boosts • Intel has been paying good amount dividends with a good frequency • More and more PC manufacturing companies like HP, Fujitsu and Apple are signing contracts with Intel to put its new CPU into their PC’s
Caution • Even for companies which built up its business merely on technologies, technology is NOT the ONLY factor that affects the price, and it’s not very rarely seen on the newspaper that a certain company with a promising new technology and good sales on that has its stock price going down dramatically. So we should always be aware of the risks behind, and adjust our investment philosophies accordingly