Advanced Micro Devices, Inc.AMD
NMS • Technology
$645.86
P/E
163.92
PEG
1.00
FCF Yield
0.6%
Rev Growth YoY
+50.1% YoY
Gross Margin
53.8%
Health Score
7/10
D/E Ratio
0.05
Confidence
MEDIUM
Business Snapshot
Advanced Micro Devices designs and sells semiconductors, with its revenue concentrated in data center processors, client CPUs, and graphics chips used across computing and AI workloads. It competes in the global semiconductor market as a challenger to larger incumbents, particularly in data center and AI accelerators where it is a credible second source. At a market capitalisation of $1.05 trillion it sits in the large-cap tier, with TTM revenue of $41.30B and TTM net income of $6.43B. The defining characteristic is its capital-light, fabless model combined with a balance sheet carrying almost no debt (debt/equity of 0.05x), which lets it reinvest aggressively into research and capacity without leverage risk.
Financial Health
Gross margin came in at 53.8%, up from 52.8% in the prior year, while net margin (TTM) sits at 15.6% — a modest but positive expansion in profitability. The balance sheet is fortress-like: debt/equity of just 0.05x and a current ratio of 2.61x mean the company has ample short-term liquidity and virtually no leverage risk...
Risk Assessment
- VALUATION — P/E of 163.92x versus sector average of 43.1x represents a ~3.8x premium that leaves little room for execution missteps.
- VALUATION — Price/Sales of 25.52x and Price/Book of 15.68x both price in aggressive future growth relative to current fundamentals.
- VALUATION DIVERGENCE — The Python DCF estimate of $98.53 sits far below the current price of $645.86, and with the FMP DCF unavailable, the intrinsic-value range carries wide uncertainty.
- FCF / CASH BURN — FCF yield of 0.6% is below 1%, meaning the $6.74B of free cash flow is thin relative to the $1.05T market cap.
- INSIDER — Insiders recorded 0 buys versus 9 sells over the last 90 days, a net selling signal worth monitoring.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- 52-WEEK POSITION — The current price of $645.86 sits just below the 52-week high of $658.52, near the top of a range whose low was $188.22, implying the stock has already run hard....
Gross margin came in at 53.8%, up from 52.8% in the prior year, while net margin (TTM) sits at 15.6% — a modest but positive expansion in profitability. The balance sheet is fortress-like: debt/equity of just 0.05x and a current ratio of 2.61x mean the company has ample short-term liquidity and virtually no leverage risk. Free cash flow of $6.74B confirms the business generates real cash, though the FCF yield of 0.6% is thin relative to the $1.05T market cap, reflecting how richly the shares are priced rather than any cash-generation weakness. Return on equity of 10.2% is respectable but not exceptional for a company trading at these multiples. Overall, the financial position supports continued reinvestment and removes dilution risk, but the low FCF yield means investors are paying a steep price for that cash flow.
- VALUATION — P/E of 163.92x versus sector average of 43.1x represents a ~3.8x premium that leaves little room for execution missteps. - VALUATION — Price/Sales of 25.52x and Price/Book of 15.68x both price in aggressive future growth relative to current fundamentals. - VALUATION DIVERGENCE — The Python DCF estimate of $98.53 sits far below the current price of $645.86, and with the FMP DCF unavailable, the intrinsic-value range carries wide uncertainty. - FCF / CASH BURN — FCF yield of 0.6% is below 1%, meaning the $6.74B of free cash flow is thin relative to the $1.05T market cap. - INSIDER — Insiders recorded 0 buys versus 9 sells over the last 90 days, a net selling signal worth monitoring. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - 52-WEEK POSITION — The current price of $645.86 sits just below the 52-week high of $658.52, near the top of a range whose low was $188.22, implying the stock has already run hard.
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