Advanced Micro Devices, Inc.AMD
NASDAQ • Technology
$414.05
P/E
134.43
PEG
1.45
FCF Yield
1.0%
Rev Growth YoY
+37.8% YoY
Gross Margin
52.8%
Health Score
8/10
D/E Ratio
0.07
Confidence
MEDIUM
Business Snapshot
Advanced Micro Devices designs and sells high-performance computing products, including CPUs, GPUs, and AI accelerators for data centers, gaming, and embedded markets. It competes directly with Intel in PC and server processors and with NVIDIA in discrete graphics and AI training silicon. At a market capitalisation of $686.47 billion, AMD is a large-cap technology leader with trailing twelve-month revenue of $37.45 billion. The company’s defining characteristic is its aggressive push into the data center and AI accelerator market, where its MI-series GPUs are challenging NVIDIA's dominant position.
Financial Health
Gross margin stands at 52.8%, down from 54.3% in the prior year, while net margin is 13.4% — both moderate for a fabless semiconductor firm and trending slightly lower. The balance sheet is a fortress: debt-to-equity is just 0.07x and the current ratio of 2.85x indicates ample short-term liquidity...
Risk Assessment
- VALUATION — P/E of 134.43x is nearly 4x the sector average of 35x, pricing in perfection and leaving little room for disappointment.
- REVENUE DECELERATION — QoQ revenue declined -0.2% despite YoY growth of 37.8%, suggesting a possible near-term slowdown after a strong run.
- TECHNICALS — RSI and MACD data unavailable for this period; momentum cannot be independently confirmed, though price is above both moving averages.
- VALUATION DIVERGENCE — FMP DCF fair value of $51.04 and Python DCF estimate of $98.64 differ by more than 90%, creating substantial uncertainty about the true intrinsic value range.
- FCF YIELD — FCF yield of 1.0% is low, meaning the stock price is high relative to the cash being generated....