Advanced Micro Devices (AMD) AI Stock Analysis

• Market Cap: $415.64B
• Dividend Yield: N/A
• Average Volume (3M): 67.28M
• Price to Earnings (P/E): 147.4
• Beta (1Y): 1.95
• Revenue Growth: 27.17%
• EPS Growth: 108.67%
• Country: US
• Employees: 28,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.48
• Shares Outstanding: 1,622,843,800
• 10 Day Avg. Volume: 51,350,122
• 30 Day Avg. Volume: 67,282,802
• PEG Ratio: 1.36
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 7.87
• P/FCF Ratio: 84.33
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 7.85
• Enterprise Value/Gross Profit: 17.75
• Enterprise Value/Ebitda: 41.83
• 1Y Price Target: $252.42
• Price Target Upside: -1.44% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 39

• Rating: 77 Outperform
• Price Target: $295.00 ▲(15.18% Upside)

AMD's overall stock score reflects strong financial performance and positive earnings call sentiment, which are the most significant factors. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The high P/E ratio suggests potential overvaluation, posing a risk if growth expectations are not met. Despite these valuation concerns, AMD's strategic focus on AI and GPUs positions it well for future growth.

Positive Factors

Revenue Growth

AMD's significant revenue growth reflects strong demand for its products, indicating a robust market position and potential for continued expansion.

Strategic Partnership

The partnership with OpenAI positions AMD as a key player in AI infrastructure, enhancing its competitive edge and long-term growth prospects in the AI sector.

Cash Flow Generation

Strong cash flow generation enhances AMD's financial flexibility, allowing for reinvestment in growth opportunities and resilience against market fluctuations.

Negative Factors

Impact of Export Controls

Export restrictions pose a significant challenge, potentially limiting AMD's market access and affecting revenue from key international markets.

Data Center AI Revenue Decline

The decline in Data Center AI revenue highlights vulnerabilities in AMD's AI strategy, potentially impacting its competitive position in this critical growth area.

Modest Return on Equity

A modest return on equity indicates inefficiencies in generating shareholder returns, which could limit AMD's attractiveness to investors seeking high returns.

Advanced Micro Devices Business Overview & Revenue Model

Company Description

Advanced Micro Devices, Inc. (AMD) is a leading global semiconductor company that designs and manufactures innovative computing and graphics solutions for a wide range of applications. Founded in 1969 and headquartered in Santa Clara, California, AMD operates in two primary segments: Computing and Graphics, and Enterprise, Embedded, and Semi-Custom. The company is renowned for its high-performance processors, including the Ryzen series for desktops and laptops, and the EPYC series for servers, as well as its Radeon graphics cards, which cater to gaming and professional markets.

How the Company Makes Money

AMD generates revenue primarily through the sale of its semiconductor products, which include microprocessors, graphics processors, and system-on-chip (SoC) solutions. The company's key revenue streams are derived from the Computing and Graphics segment, which includes desktop and mobile processors, as well as graphics cards, and the Enterprise, Embedded, and Semi-Custom segment, which includes server processors and custom solutions for gaming consoles. Significant partnerships with major technology companies, including collaborations with Microsoft and Sony for gaming consoles, and strategic alliances in cloud computing and data centers, further enhance AMD's market presence and revenue potential. The company's focus on innovation and performance, coupled with increasing demand for high-performance computing in various sectors, contributes to its financial growth.

Advanced Micro Devices Financial Statement Overview

Summary

AMD exhibits strong financial performance with robust revenue growth, healthy profit margins, and efficient cash flow management. The balance sheet is solid with low leverage, although there is potential to enhance return on equity. The company's financials indicate a well-managed operation with a positive growth trajectory, positioning it well in the competitive semiconductor industry.

Income Statement

AMD's income statement shows strong revenue growth with a 6.67% increase in TTM, supported by a solid gross profit margin of 50.09%. The net profit margin has improved to 8.03%, indicating enhanced profitability. EBIT and EBITDA margins are healthy at 10.22% and 21.52% respectively, reflecting efficient operations. The company has shown consistent revenue growth over the years, although the growth rate has moderated compared to the previous high growth periods.

Balance Sheet

AMD maintains a robust balance sheet with a low debt-to-equity ratio of 0.08, indicating prudent financial leverage. The return on equity is modest at 3.89%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 79.74%, highlighting a strong equity base relative to total assets. Overall, the balance sheet reflects financial stability with low leverage risks.

Cash Flow

AMD's cash flow statement is strong, with a significant free cash flow growth rate of 46.86% in TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.45, and the free cash flow to net income ratio is 0.80, both suggesting efficient cash conversion. The company has demonstrated consistent growth in free cash flow over the years, enhancing its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.60B	25.79B	22.68B	23.60B	16.43B	9.76B
Gross Profit	13.10B	11.28B	8.59B	8.50B	7.93B	4.35B
EBITDA	5.56B	5.26B	4.15B	5.53B	4.17B	1.68B
Net Income	2.83B	1.64B	854.00M	1.32B	3.16B	2.49B
Balance Sheet
Total Assets	74.82B	69.23B	67.89B	67.58B	12.42B	8.96B
Cash, Cash Equivalents and Short-Term Investments	5.87B	5.13B	5.77B	5.86B	3.61B	2.29B
Total Debt	3.89B	2.32B	3.11B	2.96B	732.00M	572.00M
Total Liabilities	15.15B	11.66B	11.99B	12.83B	4.92B	3.13B
Stockholders Equity	59.66B	57.57B	55.89B	54.75B	7.50B	5.84B
Cash Flow
Free Cash Flow	4.04B	2.40B	1.12B	3.12B	3.22B	777.00M
Operating Cash Flow	4.88B	3.04B	1.67B	3.56B	3.52B	1.07B
Investing Cash Flow	-4.01B	-1.10B	-1.42B	2.00B	-686.00M	-952.00M
Financing Cash Flow	-530.00M	-2.06B	-1.15B	-3.26B	-1.90B	6.00M

Advanced Micro Devices Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 256.12
• 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 256.12 is above the 20-day moving average (MA) of 236.45, above the 50-day MA of 191.27, and above the 200-day MA of 139.41, indicating a bullish trend. The MACD of 20.19 indicates Negative momentum. The RSI at 68.53 is Neutral, neither overbought nor oversold. The STOCH value of 79.50 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
NVDA	―	$4.92T	57.63	109.42%	0.02%	71.55%	64.54%
TSM	―	$1.26T	30.79	34.89%	0.97%	39.73%	―
QCOM	―	$195.19B	17.45	44.62%	1.92%	15.82%	34.20%
AMD	―	$415.64B	147.42	4.70%	―	27.17%	108.67%
TXN	―	$146.71B	29.46	29.60%	3.41%	9.90%	1.65%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INTC	―	$186.76B	2,876.98	0.19%	―	-1.49%	―

Advanced Micro Devices Corporate Events

AMD Completes Divestiture of ZT Systems Business

On October 27, 2025, AMD announced the completion of its divestiture of the ZT Systems data center infrastructure manufacturing business to Sanmina. This strategic move allows AMD to retain ZT Systems’ design and customer enablement expertise, enhancing its AI systems for cloud customers. The partnership with Sanmina is expected to accelerate the deployment of AMD’s AI solutions, strengthening its position in the data center market and expanding its ecosystem of partners.

The most recent analyst rating on (AMD) stock is a Buy with a $250.00 price target. To see the full list of analyst forecasts on Advanced Micro Devices stock, see the AMD Stock Forecast page.

AMD Partners with OpenAI for Strategic GPU Deployment

On October 5, 2025, AMD issued a warrant to OpenAI to purchase up to 160 million shares of AMD common stock, contingent upon the purchase of AMD Instinct GPU products. This move is part of a strategic partnership between AMD and OpenAI, aimed at deploying 6 gigawatts of AMD GPUs to power OpenAI’s AI infrastructure. The partnership is expected to generate significant revenue for AMD and enhance its position in the AI industry, while enabling OpenAI to accelerate its AI capabilities.

The most recent analyst rating on (AMD) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on Advanced Micro Devices stock, see the AMD Stock Forecast page.

AMD Announces Resignation of Chief Accounting Officer

On August 22, 2025, AMD announced the resignation of Mr. Philip Carter, its Corporate Vice President and Chief Accounting Officer, effective September 5, 2025. Mr. Carter is leaving to become the Chief Financial Officer at another company, with no disputes affecting his departure. Ms. Jean Hu, AMD’s Executive Vice President, Chief Financial Officer, and Treasurer, will temporarily take over as Chief Accounting Officer while the company searches for a permanent replacement.

The most recent analyst rating on (AMD) stock is a Hold with a $140.00 price target. To see the full list of analyst forecasts on Advanced Micro Devices stock, see the AMD Stock Forecast page.

AMD’s Q2 2025 Earnings: Record Revenue & Optimism

AMD’s Q2 2025 Earnings Call: Record Revenue and Optimistic Outlook

AMD Reports Record Revenue Amid Export Challenges

Advanced Micro Devices, Inc. (AMD) is a leading semiconductor company specializing in high-performance computing, graphics, and visualization technologies, serving a diverse range of industries worldwide.

AMD Achieves Record Q2 Revenue Despite Challenges

AMD reported record revenue of $7.7 billion for the second quarter of 2025, despite an operating loss of $134 million, largely due to U.S. export controls affecting its data center GPU products. The company experienced strong demand for its server and PC processors, contributing to a 32% year-over-year revenue growth, and anticipates further growth driven by its AI and computing products. AMD’s strategic collaborations and product launches, including AI solutions and next-generation processors, position it for robust future growth and long-term shareholder value.

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.