Advanced Micro Devices (AMD) AI Stock Analysis

• Market Cap: $254.54B
• Dividend Yield: N/A
• Average Volume (3M): 52.64M
• Price to Earnings (P/E): 115.1
• Beta (1Y): 2.12
• Revenue Growth: 21.71%
• EPS Growth: 99.00%
• Country: US
• Employees: 28,000
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): 0.96
• Shares Outstanding: 1,621,404,200
• 10 Day Avg. Volume: 51,872,975
• 30 Day Avg. Volume: 52,641,836
• PEG Ratio: 3.31
• Price to Book (P/B): 4.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 94.47
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 18.62
• Enterprise Value/Ebitda: 12.70
• 1Y Price Target: $145.90
• Price Target Upside: -5.70% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 36

• Rating: 80 Outperform
• Price Target: $159.00 ▲(2.77%Upside)

AMD's overall stock score reflects strong financial performance and positive earnings call sentiment, indicating robust growth prospects. While the technical indicators show strong momentum, the high valuation poses potential risks. Corporate events further support AMD's strategic positioning in key growth areas.

Positive Factors

AI GPU Pricing Power

AMD's MI350 series is driving pricing power earlier than expected, offering a competitive advantage over Nvidia’s B200.

AI Portfolio Progress

AMD’s AI portfolio progress across processors, AI GPU, networking, software, and rack systems is encouraging, with expectations of accelerating growth driven by the MI400 accelerator-based Helios rack solutions.

Data Center Momentum

AMD is expected to continue gaining market share in server CPUs, driven by momentum from Turin Zen 5-based EPYC CPUs and the ongoing adoption of Zen 4-based products.

Negative Factors

Embedded and Gaming Weakness

Weakness in the Embedded segment and ongoing weakness in Gaming don't help the model.

Execution and Market Expectations

The burden of proof will be on AMD to execute to this, and 2026 is a long time to wait given the strong upward revisions seemingly happening everywhere else in AI compute.

Advanced Micro Devices Business Overview & Revenue Model

Company Description

Advanced Micro Devices, Inc. (AMD) is a multinational semiconductor company that specializes in developing high-performance computing and graphics solutions. Headquartered in Santa Clara, California, AMD designs and produces a wide range of products, including microprocessors, motherboard chipsets, embedded processors, and graphics processors for various applications such as personal computers, gaming consoles, and data centers. The company's innovative technologies power a broad array of devices and experiences, making it a key player in the technology and electronics sectors.

How the Company Makes Money

AMD generates revenue primarily through the sale of its semiconductor products, which are categorized into several key segments. The Computing and Graphics segment is a major revenue driver, accounting for the sale of desktop and notebook microprocessors, accelerated processing units (APUs), discrete graphics processing units (GPUs), and professional graphics products. Additionally, the Enterprise, Embedded, and Semi-Custom segment includes sales from server and embedded processors, as well as semi-custom System-on-Chip (SoC) products, which are used in gaming consoles. AMD's revenue is also bolstered by strategic partnerships and collaborations with major technology companies, original equipment manufacturers (OEMs), and original design manufacturers (ODMs). These partnerships help AMD expand its market reach and enhance its competitive position in the rapidly evolving semiconductor industry.

Advanced Micro Devices Financial Statement Overview

Summary

AMD exhibits strong financial health with impressive revenue growth and profitability. The income statement highlights robust revenue and profit margins, supported by efficient cost management. The balance sheet indicates a stable, low-leverage structure, while the cash flow statement underscores strong cash generation capabilities, positioning AMD well for future growth.

Income Statement

AMD has demonstrated robust revenue growth with a TTM increase from $25.79 billion to $27.75 billion, indicating a growth rate of approximately 7.63%. The gross profit margin is healthy at 50.91%, supported by a net profit margin of 8.02% for the TTM. The EBIT margin stands at 9.62%, and the EBITDA margin is 21.43%, reflecting strong operational efficiency. These metrics highlight AMD's effective cost management and profitability in the competitive semiconductor industry.

Balance Sheet

AMD maintains a strong financial position with a debt-to-equity ratio of 0.08, indicating low leverage. The return on equity is 3.85% for the TTM, showing effective utilization of equity to generate profits. The equity ratio is 80.91%, suggesting a solid capital structure with a significant portion of assets financed by equity. This stability positions AMD well for future growth opportunities.

Cash Flow

AMD's cash flow performance is commendable, with a free cash flow growth rate of 14.46% from the previous year. The operating cash flow to net income ratio is 1.55, indicating strong cash generation relative to net income. Additionally, the free cash flow to net income ratio is 1.24, reflecting efficient cash management and the capability to reinvest in growth initiatives or return value to shareholders.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.79B	22.68B	23.60B	16.43B	9.76B
Gross Profit	12.72B	10.46B	12.05B	7.93B	4.35B
EBITDA	5.26B	4.15B	5.53B	4.17B	1.68B
Net Income	1.64B	854.00M	1.32B	3.16B	2.49B
Balance Sheet
Total Assets	69.23B	67.89B	67.58B	12.42B	8.96B
Cash, Cash Equivalents and Short-Term Investments	5.13B	5.77B	5.86B	3.61B	2.29B
Total Debt	2.21B	3.00B	3.17B	661.00M	531.00M
Total Liabilities	11.66B	11.99B	12.83B	4.92B	3.13B
Stockholders Equity	57.57B	55.89B	54.75B	7.50B	5.84B
Cash Flow
Free Cash Flow	2.40B	1.12B	3.12B	3.22B	777.00M
Operating Cash Flow	3.04B	1.67B	3.56B	3.52B	1.07B
Investing Cash Flow	-1.10B	-1.42B	2.00B	-686.00M	-952.00M
Financing Cash Flow	-2.06B	-1.15B	-3.26B	-1.90B	6.00M

Advanced Micro Devices Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 154.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMD, the sentiment is Positive. The current price of 154.72 is above the 20-day moving average (MA) of 145.82, above the 50-day MA of 128.47, and above the 200-day MA of 123.38, indicating a bullish trend. The MACD of 8.68 indicates Negative momentum. The RSI at 68.40 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMD.

Advanced Micro Devices Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QCOM	83 Outperform	$169.97B	15.76	42.21%	2.18%	16.15%	32.28%
NVDA	82 Outperform	$4.21T	55.54	115.46%	0.03%	86.17%	81.36%
AMD	80 Outperform	$254.54B	115.09	3.90%	―	21.71%	99.00%
TSM	77 Outperform	$1.02T	27.37	33.29%	<0.01%	38.65%	―
TXN	77 Outperform	$196.79B	41.04	29.88%	2.50%	3.62%	-5.13%
Sector *	70 Neutral	€7.83B	16.91	8.79%	2.02%	6.90%	1.32%
INTC	56 Neutral	$100.76B	―	-18.66%	2.15%	-3.97%	-562.40%

Advanced Micro Devices Corporate Events

AMD Approves Executive Salary Increases Effective July 2025

On June 27, 2025, AMD’s Board of Directors approved salary increases for key executives effective July 1, 2025, reflecting the company’s commitment to retaining top talent. Additionally, on August 15, 2025, these executives will receive long-term incentive awards under the 2023 Equity Incentive Plan, with a mix of performance-based and time-based stock options and units, aligning their compensation with company performance and shareholder returns.

The most recent analyst rating on (AMD) stock is a Hold with a $150.00 price target. To see the full list of analyst forecasts on Advanced Micro Devices stock, see the AMD Stock Forecast page.

AMD Sells ZT Systems Business to Sanmina

On May 19, 2025, AMD announced a definitive agreement to sell its ZT Systems data center infrastructure manufacturing business to Sanmina for $3 billion in cash and stock, with a contingent payment of up to $450 million. The transaction, expected to close by the end of 2025, aligns with AMD’s strategic plan announced in August 2024 and will make Sanmina a preferred manufacturing partner for AMD’s cloud rack and AI solutions. This move is anticipated to enhance AMD’s U.S.-based manufacturing capabilities and accelerate the deployment of AI systems for cloud customers, strengthening its position in the AI and data center markets.

The most recent analyst rating on (AMD) stock is a Hold with a $150.00 price target. To see the full list of analyst forecasts on Advanced Micro Devices stock, see the AMD Stock Forecast page.

AMD Stockholders Approve Key Proposals at Annual Meeting

On May 14, 2025, Advanced Micro Devices held its Annual Meeting of Stockholders where several key proposals were voted on. All director nominees were elected, and significant approvals included the ratification of Ernst & Young LLP as the independent registered public accounting firm, the approval of executive compensation, and amendments to increase authorized shares and limit officer liability. However, a proposal to remove the holding requirement for calling a special meeting was not approved. These decisions reflect the company’s strategic directions and governance priorities.

The most recent analyst rating on (AMD) stock is a Hold with a $150.00 price target. To see the full list of analyst forecasts on Advanced Micro Devices stock, see the AMD Stock Forecast page.

AMD Reports Strong Q1 2025 Financial Results

On May 6, 2025, AMD announced its financial results for the first quarter of 2025, reporting a revenue of $7.4 billion, a 36% increase year-over-year, with significant growth in its data center and AI segments. The company highlighted its strong product portfolio and consistent execution as key drivers for its performance, despite challenges in the macro and regulatory environment. AMD also emphasized its strategic acquisitions and partnerships aimed at enhancing its AI capabilities and expanding its market reach, positioning the company for continued growth and value creation for shareholders.