Advanced Micro Devices (AMD) AI Stock Analysis

• Market Cap: $326.42B
• Dividend Yield: N/A
• Average Volume (3M): 38.92M
• Price to Earnings (P/E): 75.7
• Beta (1Y): 1.85
• Revenue Growth: 31.83%
• EPS Growth: 80.45%
• Country: US
• Employees: 28,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.53
• Shares Outstanding: 1,630,410,900
• 10 Day Avg. Volume: 35,201,156
• 30 Day Avg. Volume: 38,919,302
• PEG Ratio: 0.49
• Price to Book (P/B): 5.54
• Price to Sales (P/S): 10.08
• P/FCF Ratio: 51.84
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 9.39
• Enterprise Value/Gross Profit: 18.97
• Enterprise Value/Ebitda: 44.66
• 1Y Price Target: $286.04
• Price Target Upside: 42.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 31
• EPS Forecast (FY): 6.78
• Revenue Forecast (FY): $47.05B

• Rating: 71 Outperform
• Price Target: $217.00 ▲(8.39% Upside)
• Action: Upgraded Date: 02/25/26
• Date: Action: Upgraded 02/25/26

The score is driven primarily by strong financials (improving profitability, strong free cash flow, and very low leverage) and a positive earnings outlook centered on data-center/AI growth and solid Q1 guidance. These strengths are partially offset by weak near-term technical momentum (below key moving averages with negative MACD) and a demanding valuation (high P/E with no dividend support).

Positive Factors

Conservative balance sheet and strong cash generation

Very low leverage combined with materially improved free cash flow gives AMD durable financial flexibility. This supports multi-year R&D and capex for AI products, funds buybacks/strategic deals, and cushions cyclicality in semiconductor demand, reducing financing risk over 2–6 months.

Large-scale Meta partnership scaling AI demand

A multi‑gigawatt, multi‑year commitment from Meta materially deepens AMD’s role in hyperscale AI infrastructure. This creates high‑visibility, recurring revenue and system-level adoption, aligns roadmaps (Helios/EPYC/Instinct) and offers structural scale that can drive sustained data‑center share gains.

Product momentum: EPYC, Instinct GPUs, and design‑wins

Broader product wins across EPYC servers, Instinct accelerators and $17B of design wins expand AMD’s addressable markets. These durable engineering and OEM/customer commitments underpin multi‑year revenue growth and ecosystem stickiness, reducing reliance on any single product cycle.

Negative Factors

Semi‑custom (console) revenue set to decline materially

Entering the seventh year of the console cycle creates a prolonged, structural hit to gaming/semi‑custom revenue in 2026. Given semi‑custom's contribution to gaming and near‑term gross margin mix, this cyclicality can depress segment revenues and add volatility to overall growth for several quarters.

Regulatory uncertainty around MI308 China sales

Regulatory and licensing dynamics for MI308 China shipments inject structural revenue uncertainty in key AI markets. One‑off China sales and inventory adjustments can mask recurring demand; continued export limits or licensing changes could restrict addressable demand and elongate commercialization timelines.

Elevated operating expenses from aggressive AI investment

A sustained step‑up in OpEx to fund AI product development and commercialization pressures near‑term margins. If revenue ramps (large GPU/EPYC deployments) slip, higher fixed operating costs could compress profitability and extend the payback period on strategic investments over the medium term.

Advanced Micro Devices Business Overview & Revenue Model

Company Description

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom. Its products include x86 microprocessors as an accelerated processing unit, chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services; and server and embedded processors, and semi-custom System-on-Chip (SoC) products, development services, and technology for game consoles. The company provides processors for desktop and notebook personal computers under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, AMD FX, AMD A-Series, and AMD PRO A-Series processors brands; discrete GPUs for desktop and notebook PCs under the AMD Radeon graphics, AMD Embedded Radeon graphics brands; and professional graphics products under the AMD Radeon Pro and AMD FirePro graphics brands. It also offers Radeon Instinct, Radeon PRO V-series, and AMD Instinct accelerators for servers; chipsets under the AMD trademark; microprocessors for servers under the AMD EPYC; embedded processor solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series processors brands; and customer-specific solutions based on AMD CPU, GPU, and multi-media technologies, as well as semi-custom SoC products. It serves original equipment manufacturers, public cloud service providers, original design manufacturers, system integrators, independent distributors, online retailers, and add-in-board manufacturers through its direct sales force, independent distributors, and sales representatives. The company was incorporated in 1969 and is headquartered in Santa Clara, California.

How the Company Makes Money

AMD generates revenue through several key streams. The primary source is the sale of microprocessors and graphics cards, which are utilized in desktops, laptops, and servers. The Computing and Graphics segment contributes significantly to revenue, driven by high demand for Ryzen processors and Radeon graphics cards, especially in gaming and professional workloads. Additionally, AMD's Enterprise segment earns revenue from server processors and custom silicon solutions for major gaming consoles, including partnerships with companies like Microsoft and Sony. Furthermore, AMD benefits from licensing agreements and intellectual property revenues, which also contribute to its financial performance. Recent strategic partnerships and collaborations have enhanced its market presence and revenue potential in high-growth areas such as artificial intelligence and data centers.

Advanced Micro Devices Financial Statement Overview

Summary

Fundamentals are strong overall: improving TTM growth and profitability (net margin ~10.3%), robust and improving free cash flow (~$6.7B), and a conservatively levered balance sheet (debt-to-equity ~0.06). The main constraint is cyclical volatility—margins and cash-flow coverage have swung materially across 2021–2024.

Income Statement

TTM (Trailing-Twelve-Months) revenue is $34.6B with solid year-over-year growth (up ~8%), and profitability has improved versus 2023–2024 (TTM net margin ~10.3% vs. ~3.8% in 2023 and ~6.4% in 2024). Gross margin remains healthy around the high-40%s, supporting earnings leverage as demand recovers. The key weakness is margin volatility: net margin was much higher in 2020–2021 and then compressed materially in 2022–2023, highlighting cyclicality and mix sensitivity typical of semis.

Balance Sheet

The balance sheet looks conservatively positioned with low leverage: TTM debt-to-equity is ~0.06 and total debt of ~$3.8B is modest relative to ~$63.0B in equity and ~$76.9B in assets. Returns on equity are positive but still moderate on a TTM basis (~5.6%), reflecting that profitability is recovering but not yet back to peak levels seen earlier in the cycle. Overall strength is financial flexibility; the main watch item is that returns have been diluted by the prior margin downturn.

Cash Flow

Cash generation strengthened meaningfully in TTM (Trailing-Twelve-Months): operating cash flow rose to ~$7.7B and free cash flow to ~$6.7B, with free cash flow growth of ~24% versus the prior period shown. Free cash flow is high relative to reported earnings (about 85% of net income), supporting earnings quality. A notable weakness is that operating cash flow coverage (as provided) is not consistently strong across years (improving in TTM but weaker in 2023–2024), suggesting working-capital and cycle-driven variability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.64B	25.79B	22.68B	23.60B	16.43B
Gross Profit	17.15B	12.72B	10.46B	10.60B	7.93B
EBITDA	7.28B	5.26B	4.15B	5.53B	4.17B
Net Income	4.33B	1.64B	854.00M	1.32B	3.16B
Balance Sheet
Total Assets	76.93B	69.23B	67.89B	67.58B	12.42B
Cash, Cash Equivalents and Short-Term Investments	10.55B	5.13B	5.77B	5.86B	3.61B
Total Debt	4.47B	2.21B	3.00B	2.86B	661.00M
Total Liabilities	13.93B	11.66B	11.99B	12.83B	4.92B
Stockholders Equity	63.00B	57.57B	55.89B	54.75B	7.50B
Cash Flow
Free Cash Flow	6.74B	2.40B	1.12B	3.12B	3.22B
Operating Cash Flow	7.71B	3.04B	1.67B	3.56B	3.52B
Investing Cash Flow	-5.53B	-1.10B	-1.42B	2.00B	-686.00M
Financing Cash Flow	-431.00M	-2.06B	-1.15B	-3.26B	-1.90B

Advanced Micro Devices Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 200.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMD, the sentiment is Negative. The current price of 200.21 is below the 20-day moving average (MA) of 210.73, below the 50-day MA of 218.67, and above the 200-day MA of 186.58, indicating a neutral trend. The MACD of -6.14 indicates Positive momentum. The RSI at 42.01 is Neutral, neither overbought nor oversold. The STOCH value of 45.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMD.

Advanced Micro Devices Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVDA	85 Outperform	$4.31T	36.18	101.48%	0.02%	―	―
MU	77 Outperform	$464.13B	39.20	22.55%	0.20%	45.43%	203.31%
AVGO	73 Outperform	$1.52T	67.06	31.05%	0.69%	23.87%	285.84%
AMD	71 Outperform	$326.42B	75.70	7.08%	―	31.83%	80.45%
QCOM	64 Neutral	$151.90B	29.41	21.48%	2.01%	13.66%	-45.40%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INTC	57 Neutral	$227.82B	-556.90	-0.25%	―	-1.49%	―

Advanced Micro Devices Corporate Events

AMD, Meta Expand Strategic AI Infrastructure Partnership

On February 24, 2026, AMD and Meta announced an expanded strategic partnership under which Meta will deploy up to 6 gigawatts of AMD Instinct GPUs, supported by 6th Gen AMD EPYC CPUs and the jointly developed AMD Helios rack-scale architecture, with shipments for the first 1-gigawatt phase scheduled to start in the second half of 2026. To align incentives, AMD on February 23, 2026 issued Meta a performance-based warrant for up to 160 million AMD shares vesting in tranches tied to gigawatt-scale GPU purchase milestones, AMD stock price thresholds and Meta’s technical and commercial conditions, a structure AMD expects to drive substantial multi-year revenue growth and be accretive to its non-GAAP earnings per share while deepening its role in large-scale AI infrastructure.

The most recent analyst rating on (AMD) stock is a Hold with a $220.00 price target. To see the full list of analyst forecasts on Advanced Micro Devices stock, see the AMD Stock Forecast page.

AMD Grants CEO Long-Term Performance-Based Equity Award

On February 10 and 11, 2026, AMD’s board and its Compensation and Leadership Resources Committee approved fiscal 2025 annual cash performance bonuses for key executives, including CFO Jean Hu, CTO Mark Papermaster, data center head Forrest Norrod, general counsel Ava Hahn and CEO Lisa Su, with payments expected in March 2026. The board also approved a one-time, $75 million performance-based equity award for Su, structured as PRSUs tied to ambitious long-term stock price hurdles through March 15, 2031, in a design aimed at retaining her leadership, tightly aligning her compensation with shareholder value creation and reinforcing AMD’s long-term strategic and market outperformance goals.

The CEO Value Creation Equity Award converts into PRSUs based on the company’s stock price and pays out only if multi-year performance targets, including stock price CAGRs above market benchmarks and a $600 share-price hurdle, are achieved while Su remains in a full-time leadership role. By linking vesting to sustained price performance and extended tenure, AMD signals confidence in Su as the architect of its strategic plan and underscores to investors that executive rewards will depend on durable market gains rather than short-term results.

The most recent analyst rating on (AMD) stock is a Hold with a $235.00 price target. To see the full list of analyst forecasts on Advanced Micro Devices stock, see the AMD Stock Forecast page.

AMD posts record 2025 results driven by data center

On February 3, 2026, AMD reported record results for the fourth quarter and full year 2025, underscoring its strengthening position in high-performance computing and AI. Fourth-quarter 2025 revenue rose 34% year-on-year to $10.3 billion, with gross margin at 54% and net income more than tripling to $1.5 billion, while non-GAAP metrics showed record operating income of $2.9 billion and earnings per share of $1.53. For full-year 2025, AMD posted record revenue of $34.6 billion, up 34% from 2024, with GAAP net income surging 164% to $4.3 billion and non-GAAP net income climbing to $6.8 billion, driven by broad-based demand for its EPYC and Ryzen CPUs and rapid growth of its Instinct data center AI GPUs. The Data Center segment delivered a record $5.4 billion in fourth-quarter revenue and $16.6 billion for the year, while Client and Gaming revenue hit $3.9 billion in the quarter and $14.6 billion for 2025, reflecting strong Ryzen CPU demand, market share gains in PCs, and higher semi-custom and Radeon GPU sales. Results were also shaped by U.S. export controls on Instinct MI308 GPUs, with about $440 million in related inventory charges for 2025, partially offset by a $360 million reserve release and approximately $390 million in MI308 revenue to China in the fourth quarter, highlighting both the regulatory headwinds and the scale of AI-driven demand in key markets.

The most recent analyst rating on (AMD) stock is a Hold with a $254.00 price target. To see the full list of analyst forecasts on Advanced Micro Devices stock, see the AMD Stock Forecast page.

AMD Appoints Emily Ellis as New VP and CAO

On December 12, 2025, AMD announced the appointment of Emily Ellis as the new Corporate Vice President and Chief Accounting Officer, effective December 15, 2025. Ellis, who previously held a senior position at Palo Alto Networks, brings extensive experience from her tenure at PricewaterhouseCoopers. This strategic appointment is expected to strengthen AMD’s financial leadership as Jean Hu, who served as interim Chief Accounting Officer, will continue her role as Executive Vice President, Chief Financial Officer, and Treasurer. The appointment reflects AMD’s commitment to enhancing its financial operations and maintaining its competitive edge in the semiconductor industry.

The most recent analyst rating on (AMD) stock is a Buy with a $280.00 price target. To see the full list of analyst forecasts on Advanced Micro Devices stock, see the AMD Stock Forecast page.