AMD Advanced Micro Devices, Inc. - Fundamental Analysis
NEUTRAL
AMD Stock | Fundamental Analysis & Investment Insights
NASDAQ
•
Technology
•
Semiconductors
Current Price
$246.81
Analyst Target
$276.76
+12.1% Upside
52W High
$267.08
52W Low
$76.48
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Nov 15, 2025
Market cap
$403.69B
P/E
129.9
ROE
5.3%
Profit margin
10.3%
Debt/Equity
0.06
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
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.
Key Strengths
Exceptional revenue growth of 35.6% YoY, outpacing sector average of 20.77% and positioning AMD favorably in AI and data center expansion
Strong earnings growth of 60.3% YoY, reflecting operating leverage and cost discipline amid rising demand for high-performance computing
Low debt/equity ratio of 0.06, indicating conservative capital structure and minimal refinancing risk
Gross margin of 51.46%, demonstrating pricing power and efficient manufacturing in competitive semiconductor landscape
Analyst consensus remains 'buy' with 43 analysts tracking, suggesting institutional confidence in future execution
Key Risks
Elevated P/E of 129.9x and forward P/E of 48.4x, creating vulnerability to multiple contraction if growth slows or macro conditions deteriorate
ROE of 5.32% and ROA of 2.60% significantly lag sector averages (27.62% and ~15% implied), indicating weak returns on capital deployment
Insider selling activity: $51.87M in sales over last 6 months with zero buys, suggesting lack of confidence among executives
Valuation multiples (Price/Sales of 12.6x, Price/Book of 6.61x) are stretched even versus high-growth peers like PLTR and MU
Missing quarterly earnings data and lack of earnings surprise history limit visibility into earnings quality and predictability
AI Fair Value Estimate
Based on comprehensive analysis
$276.76
+12.1% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
54
Moderate
45
80
60
85
0
AI Verdict
AMD exhibits strong growth momentum and solid financial health but trades at a steep valuation premium with subpar returns on capital, resulting in a neutral overall score; while growth justifies some premium versus peers like CSCO and CRM, it remains questionable against weaker profitability and insider skepticism
Key drivers: Robust revenue and earnings growth in AI and data center, High valuation multiples creating downside risk, Weak insider sentiment despite strong price performance
Confidence
65%
Value
45/100
While the sector average P/E of 175.6x is inflated by outliers like PLTR (1740x), AMD’s valuation remains stretched relative to fundamental peers like MU (32.3x) and CRM (35.7x), suggesting limited margin of safety
Positives
- Forward P/E of 48.4x is lower than current P/E of 129.9x, suggesting earnings growth is expected to de-risk valuation
Watchpoints
- Current P/E of 129.9x is extremely high even within a high-growth tech sector (avg 175.6x skewed by outliers like PLTR)
- Price/Sales of 12.6x and Price/Book of 6.61x are well above sector medians and close peers like MU and CSCO
Future
80/100
With 1Y price return of +77.8% and 6M return of +110.6%, momentum is strong, and growth trajectory supports continued outperformance if AI adoption sustains
Positives
- Revenue growth of 35.6% YoY and earnings growth of 60.3% YoY indicate strong demand for AI and data center chips
- Q/Q earnings growth of 61.2% suggests accelerating momentum into current period
Watchpoints
- Valuation assumes flawless execution and continued hypergrowth, leaving little room for error
- Competition from NVDA and INTC remains intense in core markets
Past
60/100
Despite strong multi-year price appreciation, historical profitability and capital efficiency have lagged peers, and lack of earnings transparency undermines confidence in past performance sustainability
Positives
- 5Y return of +194.8% and 3Y return of +223.2% demonstrate long-term value creation and investor confidence
- Consistent gross margin above 50% reflects stable cost structure and product mix
Watchpoints
- ROE of 5.32% and ROA of 2.60% have remained weak over time, indicating persistent capital inefficiency
- No quarterly earnings data available, preventing assessment of earnings quality and consistency
Health
85/100
AMD’s balance sheet appears strong relative to peers like CSCO (0.63 D/E) and CRM (0.19 D/E), with minimal leverage enhancing resilience in downturns
Positives
- Debt/Equity of 0.06 is exceptionally low, providing significant financial flexibility
- Current ratio of 2.31 and quick ratio of 1.18 indicate strong short-term liquidity
Watchpoints
- Total cash and total debt figures unavailable, limiting full assessment of cash runway and leverage
Dividend
0/100
AMD does not currently pay a dividend, which is common among growth-focused semiconductor firms but reduces total return potential in flat markets
Positives
- N/A
Watchpoints
- No dividend paid, limiting appeal to income-oriented investors
- Payout ratio of 0.00% confirms absence of return-of-capital policy
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$246.81
Analyst Target
$276.76
Upside/Downside
+12.1%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for AMD and closest competitors.
Updated 2025-11-14
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
AMD
Advanced Micro Devices, Inc.
Primary
|
+194.8% | +223.2% | +77.8% | +110.6% | +3.4% | +5.7% |
|
PLTR
Palantir Technologies Inc.
Peer
|
+992.3% | +1986.5% | +194.0% | +34.4% | -3.1% | -2.2% |
|
CSCO
Cisco Systems, Inc.
Peer
|
+112.5% | +89.6% | +38.1% | +24.1% | +12.2% | +9.8% |
|
IBM
International Business Machines Corporation
Peer
|
+232.3% | +136.3% | +50.0% | +16.0% | +9.5% | +0.3% |
|
MU
Micron Technology, Inc.
Peer
|
+308.8% | +297.6% | +149.9% | +152.3% | +28.6% | +3.7% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
129.9
Forward P/E
48.39
PEG Ratio
N/A
P/B Ratio
6.61
P/S Ratio
12.6
EV/Revenue
12.44
EV/EBITDA
65.81
Market Cap
$403.69B
Profitability
Profit margins and return metrics
Profit Margin
10.32%
Operating Margin
13.74%
Gross Margin
51.46%
ROE
5.32%
ROA
2.6%
Growth
Revenue and earnings growth rates
Revenue Growth
+35.6%
Earnings Growth
+60.3%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+61.2%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.06
Low debt
Current Ratio
2.31
Strong
Quick Ratio
1.18
Good
Cash/Share
$4.45
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-03
$N/A
2025-11-04
$0.75
+10.0% surprise
2025-08-05
$0.54
+1240.2% surprise
2025-05-06
$0.96
+2.8% surprise
Technology Sector Comparison
Comparing AMD against 38 companies in the Technology sector
(13 bullish, 18 neutral, 1 bearish)
P/E Ratio
129.9
This Stock
vs
114.31
Sector Avg
+13.6%
(Premium)
Return on Equity (ROE)
5.32%
This Stock
vs
25.54%
Sector Avg
-79.2%
(Below Avg)
Profit Margin
10.32%
This Stock
vs
17.79%
Sector Avg
-42.0%
(Weaker)
Debt to Equity
0.06
This Stock
vs
0.78
Sector Avg
-91.8%
(Less Debt)
Revenue Growth
35.6%
This Stock
vs
19.4%
Sector Avg
+83.5%
(Fast Growth)
Current Ratio
2.31
This Stock
vs
1.97
Sector Avg
+16.9%
(Stronger)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
AMD
Advanced Micro Devices, Inc.
|
NEUTRAL | $403.69B | 129.9 | 5.3% | 10.3% | $246.81 | |
|
PLTR
Palantir Technologies Inc.
|
NEUTRAL | $410.28B | 1740.1 | 19.5% | 28.1% | $174.01 | |
|
CSCO
Cisco Systems, Inc.
|
NEUTRAL | $307.38B | 30.12 | 22.4% | 17.9% | $78.0 | |
|
IBM
International Business...
|
NEUTRAL | $285.74B | 36.48 | 30.2% | 12.1% | $305.69 | |
|
MU
Micron Technology, Inc.
|
NEUTRAL | $277.06B | 32.56 | 17.2% | 22.8% | $246.83 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-10-15 | PAPERMASTER MARK D | Chief Technology Officer | Option Exercise | 16,800 | $574,392 |
| 2025-10-15 | PAPERMASTER MARK D | Chief Technology Officer | Sale | 16,800 | $3,767,863 |
| 2025-10-06 | HAHN AVA M | General Counsel | Sale | 2,868 | $648,197 |
| 2025-09-24 | NORROD FORREST EUGENE | Officer | Sale | 2,250 | $371,272 |
| 2025-09-15 | PAPERMASTER MARK D | Chief Technology Officer | Option Exercise | 16,800 | $574,392 |
| 2025-09-15 | PAPERMASTER MARK D | Chief Technology Officer | Sale | 16,800 | $2,674,513 |
| 2025-09-10 | NORROD FORREST EUGENE | Officer | Option Exercise | 8,200 | $280,358 |
| 2025-09-10 | NORROD FORREST EUGENE | Officer | Sale | 17,200 | $2,768,021 |
| 2025-09-02 | HAHN AVA M | General Counsel | Sale | 143 | $22,608 |
| 2025-08-21 | SU LISA T | Chief Executive Officer | Option Exercise | 224,727 | $7,683,416 |
| 2025-08-21 | SU LISA T | Chief Executive Officer | Sale | 225,000 | $36,893,351 |
| 2025-08-15 | GRASBY PAUL DARREN | Officer | Stock Award | 33,659 | - |
| 2025-08-15 | HUYNH JACK M | Officer | Stock Award | 2,804 | - |
| 2025-08-15 | PAPERMASTER MARK D | Chief Technology Officer | Option Exercise | 58,875 | $574,392 |
| 2025-08-15 | NORROD FORREST EUGENE | Officer | Stock Award | 26,927 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
43 analysts
Roth Capital
2025-11-12
Buy
Buy
Piper Sandler
2025-11-12
Overweight
Overweight
Wells Fargo
2025-11-12
Overweight
Overweight
B of A Securities
2025-11-12
Buy
Buy
Wedbush
2025-11-12
Outperform
Outperform
Rosenblatt
2025-11-12
Buy
Buy
Mizuho
2025-11-12
Outperform
Outperform
Morgan Stanley
2025-11-12
Equal-Weight
Equal-Weight
Evercore ISI Group
2025-11-12
Outperform
Outperform
Wedbush
2025-11-10
Outperform
Outperform