AMD Advanced Micro Devices, Inc. - Fundamental Analysis

AMD trades at a significant premium to historical norms and peers with a P/E of 129.9x and forward P/E of 48.4x, despite robust YoY revenue growth of 35.6% and earnings growth of 60.3%, signaling strong execution in high-growth segments like data center and AI. However, profitability metrics remain below sector averages—ROE of 5.32% vs. sector avg of 27.62%, and profit margin of 10.32% vs. 16.86%—raising concerns about capital efficiency and pricing power relative to peers like MU and PLTR. Price momentum remains strong with a 1Y return of +77.8% and 5Y return of +194.8%, but insider selling worth $51.87M over the last six months introduces caution. Analysts maintain a 'buy' consensus with a $276.76 target, implying ~12% upside, though valuation appears stretched even within a high-growth tech context.