Advanced Micro Devices, Inc.AMD
NMS • Technology
$469.45
P/E
119.15
PEG
0.73
FCF Yield
0.9%
Rev Growth YoY
+50.1% YoY
Gross Margin
53.8%
Health Score
8/10
D/E Ratio
0.05
Confidence
MEDIUM
Business Snapshot
Advanced Micro Devices is a semiconductor company that designs and sells central processing units, graphics processors, and related accelerated computing products for data centers, PCs, and embedded markets. The company competes directly with Intel in CPUs and Nvidia in GPUs, positioning itself as a challenger in a market characterized by rapid technological advancement and heavy capital intensity. With a market capitalization of $766.37B, AMD is classified as a large-cap technology company with TTM revenue of $41.30B, reflecting substantial scale in the semiconductor industry. The company distinguishes itself through its 50.1% year-over-year revenue growth rate, which is remarkably strong for a business of its size and indicates it is taking meaningful market share in high-growth segments like AI-accelerated computing.
Financial Health
Gross margin stands at 53.8%, improving 100 basis points from 52.8% in the prior year, while net margin of 15.6% reflects solid bottom-line conversion after operating expenses. The balance sheet is in fortress territory with a debt/equity ratio of just 0.05x and a current ratio of 2.61x, providing ample liquidity headroom for strategic investments or weathering cyclical downturns...
Risk Assessment
VALUATION — P/E of 119.15x is more than 3x the sector average of 38.3x, leaving limited margin of safety if growth disappoints.
VALUATION DIVERGENCE — The Python DCF estimate of $98.53 is dramatically below the current price of $469.45, representing a potential overvaluation gap of approximately 376%; note the FMP DCF value is not available for comparison, so the divergence range cannot be fully assessed.
TECHNICALS — RSI, MACD, and moving average data partially available; price is below the 50-day MA of $509.94 while above the 200-day MA of $327.73, indicating short-term weakness within a longer-term uptrend.
52-WEEK POSITION — Current price of $469.45 is 19.7% below the 52-week high of $584.73, though well above the midpoint of the range ($367.00).
INSIDER ACTIVITY — 1 insider sell versus 0 buys over the last 90 days, a net selling signal that warrants monitoring....
Gross margin stands at 53.8%, improving 100 basis points from 52.8% in the prior year, while net margin of 15.6% reflects solid bottom-line conversion after operating expenses. The balance sheet is in fortress territory with a debt/equity ratio of just 0.05x and a current ratio of 2.61x, providing ample liquidity headroom for strategic investments or weathering cyclical downturns. Free cash flow is strongly positive at $6.74B, though the FCF yield of 0.9% is modest relative to the company's valuation. Return on equity of 10.2% is respectable but not exceptional for a company trading at premium multiples. Overall, AMD's combination of low leverage, improving margins, and positive cash generation gives it significant financial flexibility for reinvestment in R&D and potential acquisitions without meaningful dilution risk.
VALUATION — P/E of 119.15x is more than 3x the sector average of 38.3x, leaving limited margin of safety if growth disappoints. VALUATION DIVERGENCE — The Python DCF estimate of $98.53 is dramatically below the current price of $469.45, representing a potential overvaluation gap of approximately 376%; note the FMP DCF value is not available for comparison, so the divergence range cannot be fully assessed. TECHNICALS — RSI, MACD, and moving average data partially available; price is below the 50-day MA of $509.94 while above the 200-day MA of $327.73, indicating short-term weakness within a longer-term uptrend. 52-WEEK POSITION — Current price of $469.45 is 19.7% below the 52-week high of $584.73, though well above the midpoint of the range ($367.00). INSIDER ACTIVITY — 1 insider sell versus 0 buys over the last 90 days, a net selling signal that warrants monitoring.
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