Advanced Micro Devices (AMD)
NASDAQ:AMD
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Advanced Micro Devices
(NASDAQ:AMD)
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Rating:79Outperform
Price Target:
$521.00
▲(87.15% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial performance (low leverage and accelerating free cash flow) and a very upbeat earnings outlook with strong Q2 guidance and a sizable AI/data-center ramp. This is tempered by stretched valuation (high P/E) and overheated technical momentum (RSI/Stoch at elevated levels), which raises near-term pullback risk.
Positive Factors
Strong cash generation & conservative balance sheet
AMD's accelerating free cash flow (~$8.6B TTM) combined with very low leverage gives durable financial flexibility. This supports sustained R&D and product ramps, funds capital-intensive data center initiatives, and cushions cyclical downturns without forcing dilutive financing.
Negative Factors
Gross margin dilution risk from GPU ramp
Scaling lower‑margin Instinct GPUs can structurally depress blended gross margins unless CPU and software economics offset the mix shift. Persistent margin dilution would require higher volume or pricing power elsewhere to maintain operating profitability over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & conservative balance sheet
AMD's accelerating free cash flow (~$8.6B TTM) combined with very low leverage gives durable financial flexibility. This supports sustained R&D and product ramps, funds capital-intensive data center initiatives, and cushions cyclical downturns without forcing dilutive financing.
Read all positive factors
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 (AMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$742.23B
Dividend YieldN/A
Average Volume (3M)32.47M
Price to Earnings (P/E)60.3
Beta (1Y)1.94
Revenue Growth34.97%
EPS Growth123.87%
CountryUS
Employees28,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)3.08
Shares Outstanding1,630,600,600
10 Day Avg. Volume32,965,368
30 Day Avg. Volume32,465,936
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/Revenue19.77
Enterprise Value/Gross Profit39.32
Enterprise Value/Ebitda103.22
Forecast
1Y Price Target
$446.06Price Target Upside60.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering35
EPS Forecast (FY)7.32
Revenue Forecast (FY)$49.26B
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 makes money primarily by selling semiconductor products and related technology to OEMs, hyperscale/cloud and enterprise customers, and channel partners. Its revenue is largely generated from: (1) Client processors and chipsets sold into consum...
Advanced Micro Devices Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial inflection driven by Data Center and AI demand: substantial revenue growth (38% YoY), record free cash flow, robust EPYC and Instinct momentum and upgraded TAM/growth outlooks. Notable near-term risks include gross margin dilution from GPU ramp, higher operating expenses, memory/component cost headwinds affecting PC and gaming demand, and supply-chain/build-out constraints. Management expressed confidence in supply partnerships, customer engagements, and the product roadmap, and provided strong guidance for Q2 and H2 ramps.Positive Updates
Strong Overall Financial Performance
Revenue of $10.3B, up 38% year-over-year and above the high end of guidance; diluted non-GAAP EPS $1.37, up 43% year-over-year; operating income $2.5B (25% margin).
Negative Updates
Gross Margin Dilution Risk from Instinct Ramp
MI450 / Helios GPUs are expected to ramp in H2 and are below corporate-average gross margin, creating potential dilution as Instinct scales despite offsetting tailwinds from CPUs and other segments.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Overall Financial Performance
Revenue of $10.3B, up 38% year-over-year and above the high end of guidance; diluted non-GAAP EPS $1.37, up 43% year-over-year; operating income $2.5B (25% margin).
Read all positive updates
Company Guidance
AMD guided second-quarter FY2026 revenue of approximately $11.2 billion ± $300 million (midpoint up ~46% year‑over‑year, roughly +9% sequentially), called out server CPU revenue to grow >70% year‑over‑year in Q2 with double‑digit growth in both Data Center AI and Embedded, and said Client & Gaming should grow year‑over‑year and outperform the market; they expect non‑GAAP gross margin of ~56%, non‑GAAP operating expenses of about $3.3 billion, non‑GAAP other income of ~+$60 million, a non‑GAAP effective tax rate of 13% and a diluted share count of ~1.66 billion. Looking further out, AMD reiterated a strong H2 ramp for MI450/Helios (shipments and production ramp in H2), forecasted “tens of billions” of Data Center AI revenue in 2027 with confidence to exceed their >80% long‑term AI growth target, raised the server CPU TAM outlook to >$120 billion by 2030 (CAGR >35%), and reiterated a path to deliver >$20 in EPS over the strategic time frame.Advanced Micro Devices Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
85
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.45B | 34.64B | 25.79B | 22.68B | 23.60B | 16.43B |
| Gross Profit | 18.83B | 17.15B | 12.72B | 10.46B | 10.60B | 7.93B |
| EBITDA | 7.17B | 7.28B | 5.26B | 4.15B | 5.53B | 4.17B |
| Net Income | 4.99B | 4.33B | 1.64B | 854.00M | 1.32B | 3.16B |
Balance Sheet | ||||||
| Total Assets | 79.64B | 76.93B | 69.23B | 67.89B | 67.58B | 12.42B |
| Cash, Cash Equivalents and Short-Term Investments | 12.35B | 10.55B | 5.13B | 5.77B | 5.86B | 3.61B |
| Total Debt | 3.87B | 4.47B | 2.21B | 3.00B | 2.86B | 661.00M |
| Total Liabilities | 15.18B | 13.93B | 11.66B | 11.99B | 12.83B | 4.92B |
| Stockholders Equity | 64.46B | 63.00B | 57.57B | 55.89B | 54.75B | 7.50B |
Cash Flow | ||||||
| Free Cash Flow | 8.57B | 6.74B | 2.40B | 1.12B | 3.12B | 3.22B |
| Operating Cash Flow | 9.72B | 7.71B | 3.04B | 1.67B | 3.56B | 3.52B |
| Investing Cash Flow | -7.74B | -5.53B | -1.10B | -1.42B | 2.00B | -686.00M |
| Financing Cash Flow | -2.45B | -431.00M | -2.06B | -1.15B | -3.26B | -1.90B |
Advanced Micro Devices Technical Analysis
Positive
278.39
Price Trends
212.13
Positive
216.98
Positive
202.45
Positive
Market Momentum
16.65
Negative
80.20
Negative
98.05
Negative
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 278.39 is above the 20-day moving average (MA) of 226.72, above the 50-day MA of 212.13, and above the 200-day MA of 202.45, indicating a bullish trend. The MACD of 16.65 indicates Negative momentum. The RSI at 80.20 is Negative, neither overbought nor oversold. The STOCH value of 98.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
87 Outperform | $5.23T | 26.37 | 104.37% | 0.02% | 65.47% | 66.12% | |
84 Outperform | $842.20B | 8.48 | 40.84% | 0.20% | 85.55% | 410.18% | |
79 Outperform | $742.23B | 60.29 | 8.05% | ― | 34.97% | 123.87% | |
79 Outperform | $2.04T | 53.40 | 32.85% | 0.69% | 25.22% | 145.70% | |
76 Outperform | $230.92B | 4.59 | 40.19% | 2.01% | 5.21% | -6.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $627.85B | -14.70 | -2.95% | ― | 1.36% | 86.07% |
* Technology Sector Average
AMD
Advanced Micro Devices
458.79
346.33
307.96%
AVGO
Broadcom
428.43
197.88
85.83%
INTC
Intel
129.44
106.88
473.76%
MU
Micron
795.33
698.63
722.49%
NVDA
Nvidia
219.44
89.54
68.93%
QCOM
Qualcomm
237.53
89.66
60.63%
Advanced Micro Devices Corporate Events
Business Operations and StrategyFinancial Disclosures
AMD Posts Strong Q1 2026 Results on AI Demand
Positive
May 5, 2026
AMD reported strong first-quarter 2026 results on May 5, 2026, with revenue rising 38% year-on-year to $10.3 billion and GAAP net income nearly doubling to $1.4 billion, driven primarily by its Data Center segment. Data center revenue jumped 57% t...
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...
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.