AMDBULLISH

Gross Margin

52.8%

Higher than 37% of Technology sector peers

Updated 22h ago

Sector Performance

37th percentile

AMD

52.8%

Sector Median

62.2%

Sector Avg

60.4%

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Deep Analysis

Gross margin, the percentage of revenue left after subtracting the cost of goods sold, currently sits at 52.8%, meaning AMD keeps about $0.53 of every sales dollar to cover other expenses.

This is well below the technology sector median of 65.9%, placing AMD in the 26th percentile among sector peers, indicating it trails most rivals in pricing power or production efficiency. The metric has been stable over the past eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%, showing no recent improvement or deterioration. The combination of a below-median margin that is flat suggests limited near-term competitive advantage from cost or pricing, increasing the risk that earnings gains must come from volume growth rather than improved profitability. This level and trend do not oppose the overall NEUTRAL verdict, as the stable but lagging margin neither signals a clear positive catalyst nor an imminent threat to the stock's valuation.

Frequently Asked Questions

What does the Gross Margin tell investors about AMD?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AMD's Gross Margin compare to its sector?

AMD's Gross Margin of 52.8% compares to a Technology sector median of 62.2%, placing it in the 37th percentile.

Who are AMD's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: FORM (47.9%), LYFT (47.6%), UBER (45.0%), GRAB (43.4%), LSPD (42.8%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.