TL;DR
People are losing money on AMD stock and hoping for a rebound, but a skeptical financial writer sees a familiar pattern of denial and sunk cost fallacy, reminding us that hope is not an investment strategy.
Story
“AMD? Yes, I hate money.” That’s the sentiment echoing across online forums right now, and frankly, I get it. Analysts downgrading the stock, people bragging about their ‘diamond hands’ while watching their portfolios shrink… it’s a familiar, depressing pattern. Remember the dot-com bubble? The housing crisis? Blind faith rarely ends well in the market. People are clinging to hopium, throwing good money after bad, convinced AMD will magically rebound. One commenter joked about a ‘bagholder convention,’ and that’s precisely what this feels like. Another soul lost to the ‘advanced money destroyer,’ as someone aptly put it. These folks are buying at $140, $122, $115, convinced they’re getting a ‘good entry price.’ Classic sunk cost fallacy. They’re already down, so they keep buying, hoping to average down. It’s like doubling down on a losing hand in poker. Sometimes, you just have to fold. There’s talk about AMD gaining on the CPU side, competing with Intel, and expanding in retail PC, phone, and console markets. All that might be true, but right now, it’s not translating into profits. And the comparison to Nvidia in AI servers? Wishful thinking. Intel does seem to be struggling, but that doesn’t automatically make AMD a winner. Competition is fierce, and things change fast in this industry. Someone commented, ‘Just a matter of time. AMD will rise, I’m sure.’ That blind optimism is what gets people into trouble. Hope isn’t an investment strategy. Remember, what goes up can come down, hard. Don’t let emotions dictate your financial decisions.
Advice
Don’t let emotions cloud your judgment. Do your own research, understand the risks, and have an exit strategy. Sometimes, cutting your losses is the smartest move.
Source
https://www.reddit.com/r/wallstreetbets/comments/1hybucr/amd_yes_i_hate_money/