Advanced Micro Devices (AMD)
Information Technology · $1.01T market cap · SEC CIK 0000002488
fundamentals score out of 100
Next reports on Nov 2, 2026, after the close, with analysts expecting $1.95 in earnings per share.
The case for AMD
- Revenue up 39.5% 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 124.3%.
- Has compounded revenue at 28.8% a year over five years.
- Current assets cover the near-term bills 2.6 times over.
The case against
- Very expensive at 157.6× earnings. Years of growth are already in the price.
- Priced at 24.5× sales, which leaves no room for a stumble.
- Swings harder than the market (beta 2.53).
- Free cash flow is only 0.7% 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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 12 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 92 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 51 |
| Momentumhow the price has behaved lately | 90 |
| Stabilityhow violently it moves, what it owes and what it pays you | 26 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 157.6× |
|---|---|
| Price / book | 13.09× |
| Price / sales | 24.5× |
| Revenue growth (YoY) | +39.5% |
| EPS growth (YoY) | +124.3% |
| Gross margin | 53% |
| Operating margin | 16% |
| Net margin | 16% |
| Return on equity | 10% |
| Debt / equity | 0.05× |
| Current ratio | 2.61 |
| Dividend yield | none |
| Beta | 2.53 |
| 52-week range | $154.78 – $616.69 |
| Position in that range | 100% of the way up |
| 3-month return | +14.5% |
| 1-year return | +291.1% |
Five years of financials, as filed
Pulled from Advanced Micro Devices's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $34.6B | $25.8B | $22.7B | $23.6B | $16.4B |
| Gross profit | $17.2B | $12.7B | $10.5B | $10.6B | $7.9B |
| Operating income | $3.7B | $1.9B | $401M | $1.3B | $3.6B |
| Net income | $4.3B | $1.6B | $854M | $1.3B | $3.2B |
| Operating cash flow | $7.7B | $3.0B | $1.7B | $3.6B | $3.5B |
| Capital expenditure | $974M | $636M | $546M | $450M | $301M |
| Total assets | $76.9B | $69.2B | $67.9B | $67.6B | $12.4B |
| Shareholder equity | $63.0B | $57.6B | $55.9B | $54.8B | $7.5B |
| Cash | $5.5B | $3.8B | $3.9B | $4.8B | $2.5B |
| Long-term debt | $2.3B | $1.7B | $1.7B | $2.5B | $1.0M |
| Free cash flow | $6.7B | $2.4B | $1.1B | $3.1B | $3.2B |
| 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% |
| Diluted shares | 1.6B | 1.6B | 1.6B | 1.6B | 1.2B |
Share count is up 33.1% over 4 years. Your slice has been diluted.
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,…
Risk factors AMD lists in its 10-K
- Merger, Acquisition, Divestiture, and Integration Risks
- The markets in which our products are sold are highly competitive and rapidly evolving
- The semiconductor industry is highly cyclical and has experienced severe downturns that have materially adversely affected, and may continue to materially adversely affect, our business in the future
- The loss of a significant customer may have a material adverse effect on us
- Economic and market uncertainty may adversely impact our business and operating results
- Our operating results are subject to quarterly and seasonal sales patterns
- Unfavorable currency exchange rate fluctuations could adversely affect us
- We rely on third parties to manufacture our products, and if they are unable to do so on a timely basis in sufficient quantities and using competitive technologies, our business could be materially adversely affected
- If essential equipment, materials, substrates or manufacturing processes are not available to manufacture our products, we could be materially adversely affected
- Failure to achieve expected manufacturing yields for our products could negatively impact our results of operations
- Our revenue from our semi-custom SoC products is dependent upon our semi-custom SoC products being incorporated into customers’ products and the success of those products
- Our products may be subject to security vulnerabilities that could have a material adverse effect on us
- Uncertainties involving the ordering and shipment of our products could materially adversely affect us
- Our ability to design and introduce new products in a timely manner includes the use of third-party intellectual property