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Advanced Micro Devices
(NASDAQ:AMD)
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Rating:79Outperform
Price Target:
$605.00
▲(26.68% Upside)
Action:Reiterated
Date:09/28/26
AMD scores well primarily on strong financial performance (low leverage, improved profitability, solid cash generation) and very upbeat earnings-call guidance tied to accelerating AI/data-center demand. The score is held back by expensive valuation (very high P/E) and technically overbought signals that raise near-term pullback risk; corporate events are modestly positive but include dilution and added-debt considerations.
Positive Factors
Data Center Scale
Rapid data-center growth is shifting AMD toward higher-value server CPUs and AI accelerators, while rising revenue concentration shows expanding customer adoption. This strengthens scale, improves strategic relevance to cloud and enterprise buyers, and supports a durable multi-year growth platform.
Negative Factors
Gaming Weakness
The gaming decline shows that AMD's non-data-center businesses remain exposed to console cycles and weaker graphics demand. Lower segment profitability also indicates that investments and reduced volume are weighing on earnings quality, leaving the company more dependent on AI-led growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Data Center Scale
Rapid data-center growth is shifting AMD toward higher-value server CPUs and AI accelerators, while rising revenue concentration shows expanding customer adoption. This strengthens scale, improves strategic relevance to cloud and enterprise buyers, and supports a durable multi-year growth platform.
Read all positive factors
Advanced Micro Devices Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows profitability across different business units, highlighting which segments are driving AMD’s earnings and where there might be opportunities or challenges.
Shows profitability across different business units, highlighting which segments are driving AMD’s earnings and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyAdvanced Micro Devices (AMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$917.83B
Dividend YieldN/A
Average Volume (3M)21.07M
Price to Earnings (P/E)142.7
Beta (1Y)1.87
Revenue Growth39.54%
EPS Growth125.82%
CountryUS
Employees31,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)3.94
Shares Outstanding1,632,475,100
10 Day Avg. Volume19,803,634
30 Day Avg. Volume21,068,510
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)5.54
Price to Sales (P/S)10.08
P/FCF Ratio51.84
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue20.73
Enterprise Value/Gross Profit38.97
Enterprise Value/Ebitda79.91
Forecast
1Y Price Target
$662.38Price Target Upside38.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering36
EPS Forecast (FY)7.64
Revenue Forecast (FY)$51.05B
Advanced Micro Devices Business Overview & Revenue Model
Company Description
Advanced Micro Devices, Inc. (AMD), established in 1969 and headquartered in Santa Clara, California, operates as a global leader in the semiconductor industry. The company organizes its extensive operations into two primary segments: Computing an...
How the Company Makes Money
AMD primarily makes money by selling semiconductor products it designs (it is largely fabless, relying on third-party foundries for manufacturing) and associated software/enablement that helps customers adopt and optimize those products. Its reven...
Advanced Micro Devices Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call was strongly positive: AMD reported record revenue, significantly expanded profitability and gross margin, and highlighted major traction across data center CPUs, Instinct accelerators, software (ROCm) and strategic AI partnerships (OpenAI, Meta, Anthropic, Microsoft). Management raised long‑term TAM views and issued aggressive multi‑year growth targets while providing strong near‑term guidance. Notable challenges include a steep YoY decline in gaming revenue, higher operating expenses, inventory build, memory cost exposure for GPU platforms, and near‑term supply-chain/ramp risks. Overall, the substantial and broad-based positives (record top-line, margin expansion, powerful AI ramp and large strategic partnerships) materially outweigh the identified lowlights.Positive Updates
Record Revenue and Strong Profitability
Revenue increased 50% year-over-year to $11.5 billion (Q2 FY2026). Non-GAAP diluted EPS rose ~82% year-over-year. Operating income was $3.1 billion (27% operating margin) and non-GAAP gross margin expanded to 56% (up >200 basis points YoY and +80 bps sequentially).
Negative Updates
Gaming Revenue Decline and Semi-Custom Weakness
Gaming revenue declined 31% YoY to $779 million (Q2 FY2026), primarily due to lower semi-custom console-related sales and weaker gaming graphics demand; gaming sequentially rose 8% but YoY decline is material.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Strong Profitability
Revenue increased 50% year-over-year to $11.5 billion (Q2 FY2026). Non-GAAP diluted EPS rose ~82% year-over-year. Operating income was $3.1 billion (27% operating margin) and non-GAAP gross margin expanded to 56% (up >200 basis points YoY and +80 bps sequentially).
Read all positive updates
Company Guidance
AMD guided third-quarter revenue of approximately $13.0 billion ± $0.3 billion (midpoint +41% year‑over‑year), non‑GAAP gross margin of ~56%, non‑GAAP operating expense of about $3.65 billion, non‑GAAP other income/(expense) of ~($55 million), a non‑GAAP tax rate of 13% and diluted share count of ~1.66 billion. Management also said server revenue should grow >80% year‑over‑year in the second half of 2026 and >70% for full‑year 2027, with the data‑center segment expected to more than double in 2027; they now expect overall revenue growth to be substantially above their prior >35% target and to significantly exceed the $20 annual EPS target within the strategic timeframe. Longer‑term TAM assumptions included data‑center AI accelerators growing >45% annually to ~$1.4 trillion by 2030, server CPUs >50% annually to ~$220 billion by 2030, and high‑performance AI computing ~40% CAGR toward ~$2 trillion by 2030.Advanced Micro Devices Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.30B | 34.64B | 25.79B | 22.68B | 23.60B | 16.43B |
| Gross Profit | 21.98B | 17.15B | 12.72B | 10.46B | 10.60B | 7.93B |
| EBITDA | 10.72B | 7.28B | 5.26B | 4.15B | 5.53B | 4.17B |
| Net Income | 6.43B | 4.33B | 1.64B | 854.00M | 1.32B | 3.16B |
Balance Sheet | ||||||
| Total Assets | 84.46B | 76.93B | 69.23B | 67.89B | 67.58B | 12.42B |
| Cash, Cash Equivalents and Short-Term Investments | 13.11B | 10.55B | 5.13B | 5.77B | 5.86B | 3.61B |
| Total Debt | 4.28B | 4.47B | 2.21B | 3.00B | 2.86B | 661.00M |
| Total Liabilities | 17.24B | 13.93B | 11.66B | 11.99B | 12.83B | 4.92B |
| Stockholders Equity | 67.22B | 63.00B | 57.57B | 55.89B | 54.75B | 7.50B |
Cash Flow | ||||||
| Free Cash Flow | 8.40B | 6.74B | 2.40B | 1.12B | 3.12B | 3.22B |
| Operating Cash Flow | 10.08B | 7.71B | 3.04B | 1.67B | 3.56B | 3.52B |
| Investing Cash Flow | -8.29B | -5.53B | -1.10B | -1.42B | 2.00B | -686.00M |
| Financing Cash Flow | -1.14B | -431.00M | -2.06B | -1.15B | -3.26B | -1.90B |
Advanced Micro Devices Technical Analysis
Neutral
477.57
Price Trends
537.14
Negative
525.73
Positive
394.25
Positive
Market Momentum
7.83
Positive
37.77
Neutral
10.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMD, the sentiment is Neutral. The current price of 477.57 is below the 20-day moving average (MA) of 610.40, below the 50-day MA of 537.14, and above the 200-day MA of 394.25, indicating a neutral trend. The MACD of 7.83 indicates Positive momentum. The RSI at 37.77 is Neutral, neither overbought nor oversold. The STOCH value of 10.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMD.
Advanced Micro Devices Risk Analysis
Advanced Micro Devices disclosed 42 risk factors in its most recent earnings report. Advanced Micro Devices reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Advanced Micro Devices Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
88 Outperform | $5.24T | 26.93 | 110.11% | 0.24% | 83.38% | 124.42% | |
81 Outperform | $211.54B | 74.72 | 16.22% | 0.11% | 30.62% | ― | |
79 Outperform | $917.83B | 142.70 | 10.07% | ― | 39.54% | 125.82% | |
76 Outperform | $190.50B | 19.60 | 37.33% | 2.10% | 1.87% | -16.70% | |
69 Neutral | $261.44B | 234.85 | 13.00% | ― | 25.12% | 48.03% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $504.14B | -42.58 | -10.76% | 2.63% | 7.47% | 55.56% |
* Technology Sector Average
AMD
Advanced Micro Devices
528.75
288.19
119.80%
INTC
Intel
89.85
51.75
135.83%
MRVL
Marvell
227.83
142.14
165.86%
NVDA
Nvidia
214.13
31.93
17.52%
QCOM
Qualcomm
172.11
8.48
5.18%
ARM
ARM Holdings PLC ADR
227.80
56.30
32.83%
Advanced Micro Devices Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
AMD to Acquire World Labs in All-Stock Deal
Positive
Sep 28, 2026
On September 26, 2026, Advanced Micro Devices, Inc. agreed to acquire all equity interests in World Labs Technologies, Inc. in an all-stock transaction valued at approximately $8.2 billion, with the final share count determined by the volume-weigh...
Business Operations and StrategyExecutive/Board Changes
AMD Refreshes Board Leadership to Support AI Strategy
Positive
Aug 19, 2026
On Aug. 19, 2026, AMD announced the appointment of Tim Ryan to its board of directors, coinciding with the retirement of long-serving director Joseph Householder, who stepped down after more than 11 years. The company emphasized that Householder&#...
Private Placements and FinancingRegulatory Filings and Compliance
AMD Launches Multi-Tranche Debt Offering to Bolster Finances
Positive
Aug 17, 2026
Advanced Micro Devices, Inc. executed an underwriting agreement on August 13, 2026 with a syndicate of major investment banks, including Barclays Capital, BofA Securities, Citigroup Global Markets, J.P. Morgan Securities, Morgan Stanley Co., and ...
Business Operations and StrategyFinancial Disclosures
AMD posts record Q2 results on surging AI demand
Positive
Aug 4, 2026
On August 4, 2026, AMD reported record second-quarter 2026 results, with revenue rising 50% year over year to $11.5 billion and GAAP net income jumping 163% to $2.3 billion, driven by a 107% surge in Data Center segment revenue to $6.7 billion. Th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.