Stocks · Semiconductors

Advanced Micro Devices, Inc. (AMD)

$559.97

+5.40% last session

Market value

$867.3bn

P/E ratio

135.2

Dividend yield

–

52-week range

$188–$659

What Advanced Micro Devices, Inc. does

(AMD), established in 1969 and headquartered in Santa Clara, California, operates as a global leader in the semiconductor industry. The company organizes its extensive operations into two primary segments: Computing and Graphics, and Enterprise, Embedded and Semi-Custom. In its Computing and Graphics division, AMD develops a range of products including x86 microprocessors (often as accelerated processing units), chipsets, and various graphics processing units (GPUs), encompassing discrete, integrated, data center, and professional variants, alongside providing development services.

Semiconductors · based in the US · listed since 1979Company website ↗

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tap a grade for the details

AGrowthGrowing fast

Sales growth, last 12 months39.5% · 100/100

Sales growth a year, 5 years28.8% · 99/100

Earnings per share growth a year, 5 years5.1% · 51/100

CProfitabilityAveragely profitable

Net profit margin15.6% · 79/100

Return on equity10% · 52/100

Return on capital, 10-year average9.3% · 52/100

AFinancial strengthRock solid

Net debt ÷ operating profitmore cash than debt · 100/100

Interest cover28× · 100/100

Current ratio (short-term assets ÷ debts)2.61 · 100/100

FValuationVery expensive

P/E against its own 10-year history86th percentile · 14/100

Free cash flow yield1.0% · 14/100

PEG (P/E ÷ growth)26.4 · 10/100

Our base-case value vs price−79% · 5/100

BMomentumRising

Share price, last 12 months119.9% · 100/100

Share price, last 3 months−1.0% · 47/100

Price

+115.5% over 1Y

27 Oct 2026$559.70

Daily closing prices. Source: Twelve Data.

Bull vs bear

The numbers are finely balanced (10 vs 15)

The bull case

A proven grower●●●

Revenue up 24.1% a year for 10 years.

Growth is speeding up●●○

Revenue growth over the last 12 months (40%) is well above its 5-year average (29%).

Margins widening●●○

Operating margin up from 5.4% to 10.7% in three years.

Cash machine●○○

Turns 19% of revenue into free cash flow.

More cash than debt●○○

A cushion for bad years, and room for buybacks or deals.

Has always bounced back●○○

Recovered from all 7 past falls of 20%+ in the price history.

The bear case

Expensive against its own history●●●

P/E 143.7 vs a 10-year median of 77.1 (range 45–153).

Priced above even our optimistic case●●●

The price is 136% above our bull case.

Questionable capital allocation●●○

Passes only 2 of 6 capital-allocation checks.

Heavy share-based pay●●○

$1.6bn in 2025: 4.7% of revenue, 24.3% of free cash flow. It's a real cost even though no cash leaves

A lot has to go right●●○

Today's price implies only about 5.4% a year on our base case.

Buybacks don't shrink the share count●○○

Spent $8.6bn, yet the share count rose 108.9%: buybacks mostly offset shares handed to staff

Can you answer every bear point? Put your answers in your thesis under risks.

See the full picture on Advanced Micro Devices, Inc.

Ten years of results, revenue by product and region, a management scorecard, bear/base/bull valuations, analyst targets, every SEC filing explained, and a thesis that checks itself after each report. Free.

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Advanced Micro Devices, Inc. (AMD)

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Bull vs bear

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