AMD's Stock Splits: From IPO to Now

Advanced Micro Devices (AMD) has been a standout performer in the semiconductor industry, and its stock splits have played a significant role in its growth. If you had bought one share of amd at its IPO, how many shares would you own today? Let's dive into the fascinating journey of AMD's stock splits and their impact on its market performance.



AMD, founded by W. J. Sanders III on May 1, 1969, has undergone several stock splits since its IPO. The most recent stock split occurred on August 22, 2000, which was a 2-for-1 split. Prior to this, there were splits on October 24, 1980 (2-for-1), October 28, 1982 (3-for-2), and August 23, 1983 (2-for-1). These splits collectively mean that one AMD share bought prior to October 24, 1980, would equal 12 AMD shares today.

The implications of these stock splits are multifaceted. Firstly, stock splits do not change the fundamental value of the company; they merely adjust the number of shares and the price per share. This means that the total market capitalization of the company remains the same. However, stock splits can make the stock more accessible to a broader range of investors by lowering the price per share, which can increase liquidity and trading volume. For example, the last stock split in 2000 would have made AMD shares more affordable for retail investors, potentially attracting more buyers and increasing market participation.

Additionally, stock splits are often seen as a positive signal from the company, indicating confidence in future growth. This can boost investor sentiment and potentially drive up the stock price. For instance, AMD's stock has soared under CEO Lisa Su's leadership, up nearly 5,000% over the last decade, which could be partly attributed to the positive market perception following stock splits.

However, it is important to note that AMD has not split its stock since 2000, and the current share price is relatively low compared to other tech companies that have recently split their stocks. This suggests that AMD may not be planning an immediate stock split, which could be a consideration for investors looking for such opportunities.

In conclusion, AMD's stock splits have significantly influenced the number of shares a single IPO shareholder would own today. These splits have made AMD's shares more accessible to a broader range of investors and have contributed to the company's market performance over time. While AMD has not split its stock since 2000, the company's growth and market performance since its IPO have been driven by its strategic shift to becoming a fabless chip company, strategic acquisitions, strong performance in the gaming chip market, and its stock split history. These factors have collectively shaped AMD's stock value over time, making it a top performer in the semiconductor industry.