AMDNEUTRAL

Return on Equity (ROE)

6.9%

Higher than 49% of Technology sector peers

Updated 1608h ago

Sector Performance

49th percentile

AMD

6.9%

Sector Median

7.5%

Sector Avg

1.9%

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Deep Analysis

Advanced Micro Devices’ Return on Equity (ROE) of 6.9% means that for every dollar of shareholders’ equity, the company generated 6.9 cents in profit over the past year — a measure of how efficiently it uses investor capital.

This figure sits below the technology sector median of 9.1%, placing AMD at the 48th percentile among its peers, slightly weaker than the industry average. The metric has been completely stable: the year-over-year change is +0.0% and the quarter-over-quarter change is also +0.0%, with identical readings for each of the last eight quarters. A low ROE that is flat offers limited upside from profitability efficiency, but the lack of deterioration removes an immediate red flag, suggesting a neutral risk profile. Since the overall stock verdict is NEUTRAL, this metric supports that view — neither boosting nor undermining the case, as the level is modest and the trend offers no catalyst for change.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AMD?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AMD's Return on Equity (ROE) compare to its sector?

AMD's Return on Equity (ROE) of 6.9% compares to a Technology sector median of 7.5%, placing it in the 49th percentile.

Who are AMD's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: SMAR (-17.3%), TEAM (-19.1%), U (-20.1%), UCTT (-22.5%), BRZE (-22.8%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.