Go to your bookstore and look for a book called "The Boom and the Bubble" by Robert Brenner. Read the chapter on the bubble, and why stock prices drastically outpaced the profitability of manufacturing firms during the mid to late 90s. Read why stock prices have fallen, and continue on to read why stock prices still are inflated compared to profitability. It assumes a bit of knowledge on monetary policy, but it shouldn't be too hard to understand.
If you actually go and read all that (it's only like 20 pages for that section), and you still feel like investing in AMD, then do as you will. Personally, I wouldn't.
Take my advice with a lot of skepticism because I don't know jack squat. I've never invested in stocks, and my knowledge is very academic in nature.
My general feeling is that a lot of people get into equities to make a quick buck, which usually results in them losing money. If you want to invest in stocks for the long run, then diversity is the way to go. But if you really want to just take a gamble and try to make a quick buck, then I don't see the point. And is there really a point to diversifying your portfolio when you're out to make a quick buck and your investment capital is so small? I mean, you can split up $1000 to absorb shocks, but how much money will you have after service charge and taxes? (correct me if I'm wrong, but tax on stocks is NOT inflation adjusted, right?)
dfi