Advanced Micro Devices Inc
Exchange: NASDAQSector: TechnologyIndustry: Semiconductors
Advanced Micro Devices, Inc. (AMD) is a global semiconductor company with facilities around the world. The Company offers x86 microprocessors, as standalone devices or as incorporated as an accelerated processing unit (APU), for the commercial and consumer markets, embedded microprocessors for commercial, commercial client and consumer markets and chipsets for desktop and mobile devices, including mobile personal computers, or PCs, and tablets, professional workstations and servers and graphics, video and multimedia products for desktop and mobile devices, including mobile PCs and tablets, home media PCs and professional workstations, servers and technology for game consoles. In September 2013, Advanced Micro Devices Inc announced that its Singapore subsidiary, Advanced Micro Devices (Singapore) Pte Ltd. completed a transaction to sell and lease-back its Singapore facility located at 508 Chai Chee Lane, Singapore 469032 to HSBC Institutional Trust Services (Singapore) Limited.
Did you know?
Earnings per share grew at a 50.0% CAGR.
Current Price
$347.81
+13.91%GoodMoat Value
$151.70
56.4% overvaluedProfile
Valuation (TTM)
Market Cap$566.25B
P/E130.62
EV$323.27B
P/B8.99
Shares Out1.63B
P/Sales16.35
Revenue$34.64B
EV/EBITDA75.95
Advanced Micro Devices Inc (AMD) Stock Analysis
GoodMoat Analysis
AMD is a leading semiconductor designer with a strong competitive position in high-growth markets like AI and data centers. However, its valuation appears extremely high relative to its current profitability, trading at a P/E of 82.7x and a GoodMoat Target suggesting significant overvaluation.
Read full analysis
Advanced Micro Devices Inc (AMD) designs high-performance computing and graphics semiconductors, competing directly with Intel and NVIDIA in CPUs, GPUs, and adaptive computing for data centers, PCs, and gaming. Applying the GoodMoat framework, the company likely scores well on criteria like Technology Leadership, Strategic Partnerships, and Niche Dominance in certain high-performance segments, indicating a durable competitive advantage. However, the valuation assessment presents a major hurdle for a value investor. The current P/E of 82.7 is extremely high, and the provided GoodMoat Target of $149.70 implies the stock is trading at a significant premium to its estimated intrinsic value. Key quality metrics like an ROE of 6.9% and a Free Cash Flow Yield of 1.9% are currently low, suggesting the premium price anticipates near-perfect execution of future growth in AI. Following the Decision Framework, while the business may pass the initial Moat & Quality Gate, the valuation appears deeply unfavourable with a negative implied margin of safety, placing it in the 'With Caution' or 'Unfavourable' category for a value-oriented approach that requires a margin of safety. Further investigation would require exceptionally high conviction in AMD's ability to dramatically accelerate profitability to justify its current price. Analysis based on data as of 2024-05-15.
Market Cap$566.25B
Current Price$347.81
P/E Ratio130.62
Forward P/E—
PEG Ratio0.59
EPS$2.65
Book Value$38.70
P/B Ratio8.99
AMD Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 50.0% FCF growth (CAGR)
Cash vs Debt
Net Cash: 1.7B
Revenue
6.7B
FY19
9.8B
FY20
16.4B
FY21
23.6B
FY22
22.7B
FY23
25.8B
FY24
34.6B
FY25
Net Income
341M
FY19
2.5B
FY20
3.2B
FY21
1.3B
FY22
854M
FY23
1.6B
FY24
4.3B
FY25
AMD 52-Week Range
$96.06
$347.81
50-Day MA: $221.57200-Day MA: $206.60
Did you know?
Free cash flow has been growing at 50.0% annually.
Advanced Micro Devices Inc (AMD) Financial Summary
Advanced Micro Devices Inc (AMD) is a Technology company in the Semiconductors industry, listed on NASDAQ. The stock currently trades at $347.81 with a market capitalization of $566.25B.
Key valuation metrics include a P/E ratio of 130.62, price-to-book ratio of 8.99, and EPS of $2.65. The company reports a profit margin of 12.5% and return on equity of 6.9%.
AMD Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $566.25B |
| P/E Ratio | 130.62 |
| EPS | $2.65 |
| P/B Ratio | 8.99 |
| P/S Ratio | 16.35 |
| EV/EBITDA | 75.95 |
| Profit Margin | 12.5% |
| Return on Equity | 6.9% |
| Debt/Equity | 0.06 |
AMD Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $6.73B | $341.00M |
| FY20 | $9.76B | $2.49B |
| FY21 | $16.43B | $3.16B |
| FY22 | $23.60B | $1.32B |
| FY23 | $22.68B | $854.00M |
| FY24 | $25.79B | $1.64B |
| FY25 | $34.64B | $4.33B |
Advanced Micro Devices Inc (AMD) Valuation
Based on GoodMoat's DCF model, Advanced Micro Devices Inc has a fair value estimate of $151.70. At the current price of $347.81, the stock appears 129.3% overvalued relative to our intrinsic value estimate.
AMD Quality Indicators
Advanced Micro Devices Inc maintains a profit margin of 12.5% and an operating margin of 10.7%. Return on equity stands at 6.9%. The current ratio is 2.85. Debt-to-equity ratio is 0.06.
About Advanced Micro Devices Inc
Advanced Micro Devices, Inc. (AMD) is a global semiconductor company with facilities around the world. The Company offers x86 microprocessors, as standalone devices or as incorporated as an accelerated processing unit (APU), for the commercial and consumer markets, embedded microprocessors for commercial, commercial client and consumer markets and chipsets for desktop and mobile devices, including mobile personal computers, or PCs, and tablets, professional workstations and servers and graphics, video and multimedia products for desktop and mobile devices, including mobile PCs and tablets, home media PCs and professional workstations, servers and technology for game consoles. In September 2013, Advanced Micro Devices Inc announced that its Singapore subsidiary, Advanced Micro Devices (Singapore) Pte Ltd. completed a transaction to sell and lease-back its Singapore facility located at 508 Chai Chee Lane, Singapore 469032 to HSBC Institutional Trust Services (Singapore) Limited.
AMD Free Cash Flow
Advanced Micro Devices Inc generated $6.70B in trailing twelve-month free cash flow, representing an FCF yield of 1.18%. This low FCF yield may reflect heavy reinvestment or growth spending.
AMD Shares Outstanding
Advanced Micro Devices Inc has 1.63 billion shares outstanding at a share price of $347.81, giving it a market capitalization of $566.25B.
AMD Recent Insider Trades
Recent insider transactions at Advanced Micro Devices Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Papermaster Mark D (Chief Technology Officer & EVP) | SELL | 6,000 | $1.53M |
| Su Lisa T (Chair, President & CEO) | SELL | 16,228 | $3.20M |
| GRASBY PAUL DARREN (EVP & CSO) | SELL | 7,500 | $1.54M |