AMD Advanced Micro Devices Inc.
Loading price history…
Daily prices, adjusted for splits. P/E and P/S value each day on the results published by then; a gap in P/E means the trailing year had no profit.
Semiconductors · Santa Clara, CA · 31,000 employees · amd.com
Advanced Micro Devices is a global semiconductor designer operating across data center, client computing, gaming, and embedded markets. The company generates revenue by providing central processors, graphics processing units, artificial intelligence accelerators, and networking components to original equipment manufacturers, cloud service platforms, and system integrators.
Bull case
The company effectively converts top-line revenue into free cash flow after accounting for stock-based compensation. It also experiences demand tailwinds from supplying hardware components directly consumed by artificial intelligence workloads.
- The price assumes about +35% a year cash-flow growth; it delivered +120% a year over three years.
- Turns 16% of revenue into free cash after stock pay.
- Annual revenue growth rose from +27% to +40%.
- The share price trend is rising.
Bear case
Returns on invested capital sit below the cost of capital, indicating the absence of an economic moat. The company also depends on continued spending on artificial intelligence infrastructure and stands to lose if customers shift toward proprietary custom silicon over merchant processors.
- Valued above what companies with similar growth, margins and size trade at.
- Returns on capital are below its cost of capital.
- Its sector cycle (AI Infrastructure CapEx) is in saturation.
Features
- V-OVERVALUED Overvalued The price is 45% above its own-history reference value.
- V-NO-MOAT No moat Returns on capital are below its cost of capital.
- V-ACCELERATING Growth accelerating Annual revenue growth rose from +27% to +40%. Shared by most companies we track
AI impact
Supplies what AI runs on Tailwind
The company sells processors, graphics chips, and data center systems used to run artificial intelligence workloads. While rising demand for computing power drives sales of its accelerators, the business remains vulnerable if customers face energy and capacity constraints that stall data center construction.
Where AI helps it
- Sells what AI workloads consume
Where AI could hurt it
- Depends on the AI build-out continuing
In the company's words
We also offer data center rack-scale platform designs that incorporate AMD data center products to meet the growing performance demands of AI supercomputers and machine learning workloads.
The growth of AI is further creating pressure on the semiconductor industry to timely design, manufacture and deliver semiconductor products and solutions to meet customer demand for computing power and AI infrastructure.
Assessed by AI from the company's own annual report filed 4 Feb 2026 and quarterly report filed 5 Aug 2026. A reading of the business, not a forecast or a recommendation.
Valuation position
AMD is at the 69th percentile of its own valuation history. Depending on how far back you look, it ranges from the 58th to the 72nd percentile. This is a relative measurement, not a price target or recommendation, and it assumes the business is still the one its history describes.
Price ladder
The measured price sits in the Above reference zone. These are reference zones, not buy instructions or forecasts that the prices will be reached.
What the price assumes
The measured price implies roughly +35.4% annual cash-flow growth, between +26.7% and +41.9% under other reasonable assumptions. Over the last three years it delivered +119.5% a year.
An estimate that depends on its assumptions, not a forecast.
Quality versus peers
Each dimension is shown on its own; they are not combined into a score.
Current analyst snapshot
Shown for reference only; not used in any measurement.
What would have to break
- Not triggered — Revenue decline
- Not triggered — Margin break
- Not available — Cash burn with rising debt
- Not triggered — Heavy dilution
- Not triggered — Warning language in filings
News
No recent brief on this company.