Advanced Micro Devices (AMD) AI Stock Analysis

• Market Cap: $338.02B
• Dividend Yield: N/A
• Average Volume (3M): 40.06M
• Price to Earnings (P/E): 78.4
• 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: 48,253,286
• 30 Day Avg. Volume: 40,058,884
• 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: 9.73
• Enterprise Value/Gross Profit: 19.64
• Enterprise Value/Ebitda: 46.25
• 1Y Price Target: $286.80
• Price Target Upside: 38.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 33
• EPS Forecast (FY): 6.75
• Revenue Forecast (FY): $46.69B

• Rating: 70 Outperform
• Price Target: $235.00 ▲(13.35% Upside)

Score is driven primarily by strong fundamentals (improving profitability, strong free cash flow, and a low-leverage balance sheet) and a constructive earnings outlook led by data-center/AI momentum. Offsetting these positives are weak technicals (trading below key moving averages) and a demanding valuation (high P/E), with added near-term uncertainty from China MI308 dynamics and expected semi-custom declines.

Positive Factors

Free Cash Flow

Sustained high free cash flow provides durable funding for R&D, capital spending, share repurchases and strategic M&A without needing high leverage. Over 2–6 months this cash generation underpins execution of AI/data-center investments and cushions cyclic semiconductor demand swings.

Balance Sheet Strength

Very low leverage and a conservative balance sheet give AMD lasting financial flexibility to fund multi-year AI/product ramps and absorb cyclical downturns. This structural strength supports sustained capital allocation and preserves optionality for strategic investments.

Data‑center & AI Momentum

Rapid EPYC and Instinct adoption, expanding hyperscaler instances and strong design wins create durable TAM expansion. Long-term product ramps and ecosystem (ROCm, enterprise AI stack) give structural competitive advantages in high‑growth AI/data‑center markets.

Negative Factors

Semi‑custom Decline

A pronounced drop in semi‑custom/console revenue removes a material, previously reliable revenue stream tied to multi‑year console cycles. Over the medium term this increases revenue cyclicality and forces greater reliance on successful execution of data‑center and GPU ramps to meet growth targets.

China / MI308 Uncertainty

Regulatory/licensing dynamics and one‑time MI308 items introduce structural revenue and margin unpredictability for AI GPU sales in China. Persistent export controls or approvals risk could delay deployments, constrain a sizable addressable market, and complicate long‑term revenue visibility.

OpEx & Margin Volatility

Aggressive, structural increases in R&D and go‑to‑market spending raise fixed costs and make sustainable margin improvement dependent on rapid revenue growth. Given semis' cyclicality and past margin swings, sustained OpEx growth increases execution risk to long‑term profitability targets.

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

Strong recovery in growth and profitability with improving TTM net margin (~10.3%) and robust free cash flow (~$6.7B) that supports earnings quality, plus a very low-leverage balance sheet (debt-to-equity ~0.06). Main risk is cyclical volatility: margins and cash-flow coverage have swung materially across recent years.

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: 207.32
• 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 207.32 is below the 20-day moving average (MA) of 230.89, below the 50-day MA of 221.14, and above the 200-day MA of 181.95, indicating a neutral trend. The MACD of -5.04 indicates Positive momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 29.43 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
MU	77 Outperform	$463.33B	39.13	22.55%	0.20%	45.43%	203.31%
NVDA	76 Outperform	$4.44T	45.28	107.36%	0.02%	65.22%	58.53%
AVGO	73 Outperform	$1.54T	68.24	31.05%	0.69%	23.87%	285.84%
AMD	70 Outperform	$338.02B	78.39	7.08%	―	31.83%	80.45%
QCOM	64 Neutral	$150.13B	29.07	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	$233.72B	-571.31	-0.25%	―	-1.49%	―

Advanced Micro Devices Corporate Events

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.