A Business at a Glance
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ADVANCED MICRO DEVICES INC
AMD
$853.8B
Mkt Cap
$521.95
-3.29%
ADVANCED MICRO DEVICES INC (AMD) has a current P/E ratio of 197.0, compared to its historical median P/E of 59.6. The stock is currently considered Expensive based on its historical valuation range.
ADVANCED MICRO DEVICES INC (AMD) has a 5-year average return on invested capital (ROIC) of 18.5%. This indicates strong capital allocation and a potential competitive advantage.
ADVANCED MICRO DEVICES INC (AMD) has a market capitalization of $850.8B. It is classified as a mega-cap stock.
ADVANCED MICRO DEVICES INC (AMD) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 0.09%.
Based on historical P/E analysis, ADVANCED MICRO DEVICES INC (AMD) appears expensive. The current P/E of 197.0 is 231% above its historical median of 59.6. The estimated fair value CAGR (P/E method) is -1.2%.
ADVANCED MICRO DEVICES INC (AMD) operates in the Semiconductors & Related Devices industry, within the Technology sector.
AMD is a semiconductor company that designs and delivers high-performance computing solutions across data center, client computing, and embedded systems, with a strategic focus on AI infrastructure and acceleration. The Data Center segment comprises server CPUs (EPYC processors), AI accelerators (Instinct GPU family), networking products (DPUs, AI NICs), FPGAs, and adaptive SoCs, serving hyperscalers, cloud providers, and enterprises requiring AI training, inference, and general-purpose compute. The Client and Gaming segment includes x86 CPUs and APUs (Ryzen brand) for desktops and notebooks sold through OEMs and distributors, discrete GPUs for gaming and visualization, and semi-custom SoCs for gaming consoles, with a business model centered on performance differentiation and market share gains in consumer and commercial segments. The Embedded segment delivers CPUs, APUs, FPGAs, and adaptive SoCs for automotive, industrial, healthcare, storage, and networking applications with integrated AI capabilities. AMD's competitive moat rests on its x86 architecture leadership, custom chiplet design expertise, comprehensive software stacks (including the open ROCm AI platform), and full-stack integration capabilities spanning compute, networking, and systems architecture; the company operates an asset-light fabless model while managing supply chain partnerships to scale production. Revenue is concentrated among a small number of large hyperscale customers and OEMs, with international sales representing a significant portion of total revenue, and the company generates revenue through both discrete product sales and system-level solutions including the Helios rack-scale platform.
【AI infrastructure acceleration】 Management expects sustained strong demand for data center AI and server CPU products driven by agentic AI workloads and hyperscaler buildouts, with server CPU revenue projected to grow more than 70% year-over-year in the second quarter of 2026 and robust growth continuing through the second half of 2026 and into 2027 as next-generation EPYC processors ramp. The company anticipates tens of billions of dollars in annual data center AI revenue in 2027 and confidence in exceeding its long-term greater-than-80% growth target for the data center segment, supported by expanding customer engagements on MI450 series GPUs and the Helios platform with multiple hyperscalers and new customers. Client and Gaming segment revenue is expected to grow year-over-year despite planned second-half headwinds from higher memory and component costs, with the company maintaining focus on commercial adoption and premium market segments. Operating leverage is expected to drive earnings expansion as revenue growth outpaces operating expense increases, with R&D investment growing faster than SG&A to support product development and go-to-market capabilities.
| Metric | Target | Period |
|---|---|---|
| Server CPU TAM | over $120 billion | by 2030 |
| Data center AI revenue | tens of billions of dollars in annual | 2027 |
| Data center segment long-term growth target | greater than 80% | coming years |
| EPS | more than $20 | strategic timeframe |
| Revenue growth CAGR | greater than 35% | next three to five years |
| Semi-custom SoC annual revenue | decline by a significant double-digit percentage | 2026 |
Server CPU TAM (by 2030): “we now expect the server CPU TAM to grow at greater than 35% annually, reaching over $120 billion by 2030”
Data center AI revenue (2027): “we have strong and increasing confidence in our ability to deliver tens of billions of dollars in annual data center AI revenue in 2027”
Data center segment long-term growth target (coming years): “to exceed our long-term growth target of greater than 80% in the coming years”
EPS (strategic timeframe): “delivering more than $20 in EPS over the strategic timeframe”
Revenue growth CAGR (next three to five years): “growing revenue at greater than 35% CAGR over the next three to five years”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 37.5B | 34.6B | 25.8B | 22.7B | 23.6B | 16.4B |
| Net Income | 5.0B | 4.3B | 1.6B | 854M | 1.3B | 3.2B |
| EPS | $3.08 | $2.65 | $1.00 | $0.53 | $0.84 | $2.57 |
| Free Cash Flow | 8.6B | 6.7B | 2.4B | 1.1B | 3.1B | 3.2B |
| ROIC | 7.5% | 6.6% | 2.9% | 0.8% | 4.5% | 77.7% |
| Gross Margin | 50.3% | 49.5% | 49.4% | 46.1% | 44.9% | 48.2% |
| Debt/Equity | 0.10 | 0.08 | 0.04 | 0.07 | 0.05 | 0.04 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 4.4B | 3.7B | 1.9B | 401M | 1.3B | 3.6B |
| Operating Margin | 11.7% | 10.7% | 7.4% | 1.8% | 5.4% | 22.2% |
| ROE | 7.8% | 7.2% | 2.9% | 1.5% | 4.2% | 47.4% |
| Shares Outstanding | 1,630M | 1,636M | 1,641M | 1,611M | 1,571M | 1,230M |
ADVANCED MICRO DEVICES INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
ADVANCED MICRO DEVICES INC trades at 197.0x trailing earnings, compared to its 15-year median P/E of 59.6x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 126.4x vs a median of 55.4x. The company's 5-year average ROIC is 18.5% with a gross margin of 47.6%. At current prices, the estimated annualized return to fair value is +31.3%.
ADVANCED MICRO DEVICES INC (AMD) reported annual revenue of $34.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
ADVANCED MICRO DEVICES INC (AMD) has a net profit margin of 12.5%. This is a healthy margin.
ADVANCED MICRO DEVICES INC (AMD) generated $6.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ADVANCED MICRO DEVICES INC (AMD) has a debt-to-equity ratio of 0.08. This indicates a conservatively financed balance sheet.
ADVANCED MICRO DEVICES INC (AMD) reported earnings per share (EPS) of $2.65 in its most recent fiscal year.
ADVANCED MICRO DEVICES INC (AMD) has a return on equity (ROE) of 7.2%. This indicates moderate shareholder returns.
ADVANCED MICRO DEVICES INC (AMD) has a 5-year average gross margin of 47.6%. This indicates decent pricing power.
The Ledger Terminal provides 18 years of financial data for ADVANCED MICRO DEVICES INC (AMD), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ADVANCED MICRO DEVICES INC (AMD) has a book value per share of $38.51, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects sustained strong demand for data center AI and server CPU products driven by agentic AI workloads and hyperscaler buildouts, with server CPU revenue projected to grow more than 70% year-over-year in the second quarter of 2026 and robust growth continuing through the second half of 2026 and into 2027 as next-generation EPYC processors ramp. The company anticipates tens of billions of dollars in annual data center AI revenue in 2027 and confidence in exceeding its long-term greater-than-80% growth target for the data center segment, supported by expanding customer engagements on MI450 series GPUs and the Helios platform with multiple hyperscalers and new customers. Client and Gaming segment revenue is expected to grow year-over-year despite planned second-half headwinds from higher memory and component costs, with the company maintaining focus on commercial adoption and premium market segments. Operating leverage is expected to drive earnings expansion as revenue growth outpaces operating expense increases, with R&D investment growing faster than SG&A to support product development and go-to-market capabilities.
Based on recent SEC filings and earnings calls, ADVANCED MICRO DEVICES INC (AMD) has provided the following forward guidance: Server CPU TAM: over $120 billion (by 2030); Data center AI revenue: tens of billions of dollars in annual (2027); Data center segment long-term growth target: greater than 80% (coming years); EPS: more than $20 (strategic timeframe); Revenue growth CAGR: greater than 35% (next three to five years), plus 1 additional metric.
Semi-custom SoC annual revenue (2026): “For 2026, we expect semi-custom SoC annual revenue to decline by a significant double-digit percentage”