Advanced Micro Devices (AMD)
NASDAQ:AMD
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Advanced Micro Devices
(NASDAQ:AMD)
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Rating:71Outperform
Price Target:
$217.00
▲(6.67% Upside)
Action:UpgradedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Advanced Micro Devices (AMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$331.67B
Dividend YieldN/A
Average Volume (3M)33.88M
Price to Earnings (P/E)80.5
Beta (1Y)1.80
Revenue Growth34.34%
EPS Growth163.27%
CountryUS
Employees28,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.53
Shares Outstanding1,630,410,900
10 Day Avg. Volume33,503,364
30 Day Avg. Volume33,879,916
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)5.54
Price to Sales (P/S)10.08
P/FCF Ratio51.84
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue9.54
Enterprise Value/Gross Profit19.28
Enterprise Value/Ebitda45.38
Forecast
1Y Price Target
$285.16Price Target Upside40.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering29
EPS Forecast (FY)6.77
Revenue Forecast (FY)$46.99B
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 processi...
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,...
Advanced Micro Devices Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows profitability across different business units, highlighting which segments are driving AMD’s earnings and where there might be opportunities or challenges.
Shows profitability across different business units, highlighting which segments are driving AMD’s earnings and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyAdvanced Micro Devices Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presented strong, broad-based operational and financial momentum with multiple record metrics (revenue, EPS, operating income, free cash flow), significant data center and Ryzen share gains, and a clear AI product and software roadmap. Management acknowledged near-term items that temper comparability (one-time MI308 China revenue and inventory reserve release), and signaled a meaningful decline in semi-custom console revenue in 2026 plus elevated OpEx as they invest for growth. Overall, the positive drivers and growth visibility materially outweigh the identified challenges.Positive Updates
Record Annual and Quarterly Financials
Full year 2025 revenue $34.6B, up 34% year-over-year; Q4 2025 revenue $10.3B, up 34% YoY and ~11% sequentially. Full year EPS $4.17, up 26% YoY; Q4 diluted EPS $1.53, up 40% YoY. Gross margin for the year 52%; Q4 non-GAAP gross margin 57% (adjusted gross margin ~55% excluding one-time inventory reserve release).
Negative Updates
Semi-Custom (Console) Revenue Headwind
Management expects semi-custom SoC annual revenue to decline by a significant double-digit percentage in 2026 as the company enters the seventh year of the current console cycle. Gaming revenue showed a 35% sequential decline in Q4 driven by lower semi-custom sales.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual and Quarterly Financials
Full year 2025 revenue $34.6B, up 34% year-over-year; Q4 2025 revenue $10.3B, up 34% YoY and ~11% sequentially. Full year EPS $4.17, up 26% YoY; Q4 diluted EPS $1.53, up 40% YoY. Gross margin for the year 52%; Q4 non-GAAP gross margin 57% (adjusted gross margin ~55% excluding one-time inventory reserve release).
Read all positive updates
Company Guidance
AMD guided first quarter 2026 revenue of approximately $9.8 billion +/- $300 million (including about $100 million of MI308 China sales), which at the midpoint implies ~32% year‑over‑year growth and about a 5% sequential decline; non‑GAAP gross margin is expected to be ~55%, non‑GAAP operating expense ~ $3.05 billion, non‑GAAP other net income ~ $35 million, a non‑GAAP effective tax rate of 13%, and diluted share count of ~1.65 billion; the company said it is not forecasting additional China MI308 revenue beyond the ~$100 million in Q1, expects semi‑custom SoC annual revenue to decline by a significant double‑digit percentage in 2026, and reiterated longer‑term targets including >60% annual data‑center segment growth over the next 3–5 years, tens of billions in data‑center AI revenue in 2027, >35% revenue CAGR over 3–5 years, and annual EPS > $20 in the strategic time frame.Advanced Micro Devices Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
81
Very Positive
| 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
Negative
203.43
Price Trends
213.28
Negative
217.08
Negative
195.54
Positive
Market Momentum
-1.33
Negative
44.65
Neutral
27.26
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 203.43 is above the 20-day moving average (MA) of 200.79, below the 50-day MA of 213.28, and above the 200-day MA of 195.54, indicating a neutral trend. The MACD of -1.33 indicates Negative momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 27.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMD.
Advanced Micro Devices Risk Analysis
Advanced Micro Devices disclosed 42 risk factors in its most recent earnings report. Advanced Micro Devices reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Advanced Micro Devices Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $4.24T | 37.75 | 104.37% | 0.02% | 65.47% | 66.12% | |
77 Outperform | $380.99B | 8.48 | 40.84% | 0.20% | 45.43% | 203.31% | |
74 Outperform | $1.47T | 53.40 | 32.85% | 0.69% | 25.22% | 145.70% | |
71 Outperform | $331.67B | 80.54 | 7.18% | ― | 34.34% | 163.27% | |
70 Outperform | $137.41B | 15.44 | 21.63% | 2.01% | 10.25% | -48.23% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
48 Neutral | $220.43B | -658.38 | -0.26% | ― | -0.47% | 98.20% |
* Technology Sector Average
AMD
Advanced Micro Devices
203.43
100.65
97.93%
AVGO
Broadcom
309.51
142.35
85.15%
INTC
Intel
44.13
22.08
100.14%
MU
Micron
337.84
249.34
281.75%
NVDA
Nvidia
174.40
64.28
58.37%
QCOM
Qualcomm
128.78
-20.77
-13.89%
Advanced Micro Devices Corporate Events
Business Operations and StrategyPrivate Placements and Financing
AMD, Meta Expand Strategic AI Infrastructure Partnership
Positive
Feb 24, 2026
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, wi...
Business Operations and StrategyExecutive/Board Changes
AMD Grants CEO Long-Term Performance-Based Equity Award
Positive
Feb 17, 2026
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 N...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
AMD posts record 2025 results driven by data center
Positive
Feb 3, 2026
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 gros...
Business Operations and StrategyExecutive/Board Changes
AMD Appoints Emily Ellis as New VP and CAO
Positive
Dec 15, 2025
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.