Advanced Micro Devices (AMD)
Information Technology · $841B market cap · SEC CIK 0000002488
ahead of 38% of the S&P 500 · #50 of 73 in Information Technology
Next reports on Feb 1, 2027, after the close, with analysts expecting $2.95 in earnings per share.
52-week range $188.22 to $658.52. 22% below its 52-week high and 174% above its low.
The case for AMD
- Revenue up 41.9% on the year.
- Generated $6.7B of free cash flow in FY2025, 19% of revenue.
- Holds more cash ($5.5B) than long-term debt ($2.3B).
- Earnings per share up 127.4%.
- Has compounded revenue at 28.8% a year over five years.
- Current assets cover the near-term bills 2.7 times over.
The case against
- Expensive for its growth: 110.3× earnings, where 25% a year of growth would justify about 45×.
- Priced at 18.5× sales, which leaves no room for a stumble.
- Swings harder than the market (beta 2.65).
- Free cash flow is only 0.8% of its market value, a thin cash return for the price.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 17 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 83 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 54 |
| Momentumhow the price has behaved lately | 65 |
| Stabilityhow violently it moves, what it owes and what it pays you | 38 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +41.9% |
|---|---|
| Over 5 years | +28.8% a year |
| FY2025 revenue | $34.6B (+34%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $6.7B |
|---|---|
| Of revenue | 19% |
| Of profit | 155% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 54% |
|---|---|
| Operating margin | 18% |
| Net margin, FY24 → FY25 → now | 6.4% → 12.5% → 16.8% |
Debt vs. cash
Is the balance sheet healthy? Yes, more cash than debt
| Cash | $5.5B |
|---|---|
| Long-term debt | $2.3B |
| Net cash | $3.2B |
| Years to repay | 0.3 yrs |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 110.3× |
|---|---|
| Fair P/E for its growth | 45× |
| P/FCF | 124.8× |
| Forward P/E | 39.8× |
| EV / EBITDA | 91.4× |
At 110.3× earnings it trades well above the 45× that 25% a year of growth would justify. At 124.8× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from Advanced Micro Devices's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $34.6B | $25.8B | $22.7B | $23.6B | $16.4B |
| Change on the year | +34% | +14% | −4% | +44% | — |
| Free cash flow | |||||
| Free cash flow | $6.7B | $2.4B | $1.1B | $3.1B | $3.2B |
| Of revenue | 19% | 9% | 5% | 13% | 20% |
| Profit margins | |||||
| Gross margin | 49.5% | 49.4% | 46.1% | 44.9% | 48.2% |
| Operating margin | 10.7% | 7.4% | 1.8% | 5.4% | 22.2% |
| Net margin | 12.5% | 6.4% | 3.8% | 5.6% | 19.2% |
| Debt vs. cash | |||||
| Cash | $5.5B | $3.8B | $3.9B | $4.8B | $2.5B |
| Long-term debt | $2.3B | $1.7B | $1.7B | $2.5B | $1.0M |
| Net cash (debt) | $3.2B | $2.1B | $2.2B | $2.4B | $2.5B |
What Advanced Micro Devices says it does
Cautionary Statement Regarding Forward-Looking Statements The statements in this report include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations and beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. These forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as we cannot assure you that the events or circumstances reflected in these statements will be achieved or will occur. You can identify forward-looking statements by the use of forward-looking terminology including “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “pro forma,” “estimates,” “anticipates,” or the negative of these words and phrases,…