Advanced Micro Devices (AMD) AI Stock Analysis

• Market Cap: $161.82B
• Dividend Yield: N/A
• Average Volume (3M): 40.81M
• Price to Earnings (P/E): 97.9
• Beta (1Y): 2.06
• Revenue Growth: 13.69%
• EPS Growth: 91.75%
• Country: US
• Employees: 28,000
• Sector: Technology
• Sector Strength: 48
• Industry: Semiconductors and Equipment
• EPS (TTM): 1.00
• Shares Outstanding: 1,620,477,900
• 10 Day Avg. Volume: 37,763,243
• 30 Day Avg. Volume: 40,811,828
• PEG Ratio: 1.07
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.17
• Price to Cash Flow (P/CF): 30.60
• P/FCF Ratio: 30.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $147.88
• Price Target Upside: 46.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 37

AMD's overall stock score reflects its strong financial performance and positive earnings call outlook, driven by robust growth in key segments and promising future guidance. However, technical analysis suggests caution due to bearish trends, and the high valuation may limit short-term upside potential. Despite these challenges, the company's strategic positioning in AI and data centers supports a positive long-term outlook.

Positive Factors

AI Competitiveness

AMD maintains a strong fundamental position with increasing competitiveness in the AI market and continued market share gains in both the Client and Server markets versus Intel.

Market Share Growth

AMD is gaining further market share momentum in both the Desktop and Notebook markets, finishing the year much stronger than internally modeled.

Negative Factors

Stock Trading Risk

There is a risk of range-bound trading for AMD shares as investors assess the MI350X ramp and potential over-ship of client CPUs.

Advanced Micro Devices Business Overview & Revenue Model

Company Description

Founded in 1969, California-based Advanced Micro Devices, Inc. is America's leading semiconductor company. The Computing and Graphics segment includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units, data center and professional GPUs and development services. The Enterprise, Embedded and Semi-Custom segment includes server and embedded processors, semi-custom System-on-Chip products, development services and technology for game consoles.

How the Company Makes Money

AMD makes money primarily through the sale of its semiconductor products, which include CPUs, GPUs, and custom chip solutions. The company divides its operations into two main segments: Computing and Graphics, and Enterprise, Embedded, and Semi-Custom. In the Computing and Graphics segment, AMD generates revenue from the sale of processors and graphics cards to PC manufacturers and consumers. The Enterprise, Embedded, and Semi-Custom segment includes sales of server processors and technology for game consoles and other embedded applications. AMD also benefits from strategic partnerships and collaborations with major technology companies, which help expand its market reach and drive innovation. Licensing of its intellectual property, although a smaller part of its revenue model, also contributes to its earnings.

Advanced Micro Devices Financial Statement Overview

Summary

AMD exhibits strong financial health, characterized by robust revenue growth, efficient cost management, and a stable balance sheet. The company is well-positioned in the semiconductor industry with solid cash flow generation. Potential areas for improvement include enhancing net profitability and optimizing cash conversion.

Income Statement

AMD has demonstrated strong revenue growth over the years, with a notable increase from 2023 to TTM. The gross profit margin has also improved, showcasing effective cost management. However, while the net profit margin has increased, it remains modest, indicating room for enhanced profitability. The EBIT and EBITDA margins are stable, reflecting healthy operational efficiency.

Balance Sheet

The balance sheet is robust, marked by a low debt-to-equity ratio, indicating conservative leverage. Return on equity is positive, but there's potential for higher returns. The high equity ratio suggests a strong financial structure, providing stability and resilience against market fluctuations.

Cash Flow

Cash flow generation is solid, with operating cash flow and free cash flow showing an upward trend. Free cash flow growth is notable, indicating efficient capital expenditure management. However, the operating cash flow to net income ratio suggests potential for improved cash conversion efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.79B	22.68B	23.60B	16.43B	9.76B
	Gross Profit
12.72B	10.46B	12.05B	7.93B	4.35B
	EBIT
1.90B	401.00M	1.26B	3.65B	1.37B
	EBITDA
1.90B	4.15B	5.53B	4.17B	1.68B
	Net Income Common Stockholders
1.64B	854.00M	1.32B	3.16B	2.49B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.13B	5.77B	5.86B	3.61B	2.29B
	Total Assets
69.23B	67.89B	67.58B	12.42B	8.96B
	Total Debt
491.00M	3.00B	3.17B	661.00M	531.00M
	Net Debt
-3.30B	-930.00M	-1.66B	-1.87B	-1.06B
	Total Liabilities
11.66B	11.99B	12.83B	4.92B	3.13B
	Stockholders Equity
57.57B	55.89B	54.75B	7.50B	5.84B
Cash Flow		Free Cash Flow
2.40B	1.12B	3.12B	3.22B	777.00M
	Operating Cash Flow
3.04B	1.67B	3.56B	3.52B	1.07B
	Investing Cash Flow
-1.10B	-1.42B	2.00B	-686.00M	-952.00M
	Financing Cash Flow
-2.06B	-1.15B	-3.26B	-1.90B	6.00M

Advanced Micro Devices Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 100.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMD, the sentiment is Negative. The current price of 100.75 is below the 20-day moving average (MA) of 108.83, below the 50-day MA of 116.04, and below the 200-day MA of 143.35, indicating a bearish trend. The MACD of -4.84 indicates Positive momentum. The RSI at 33.69 is Neutral, neither overbought nor oversold. The STOCH value of 11.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMD.

Advanced Micro Devices Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QCOM	76 Outperform	$173.83B	16.80	39.27%	2.13%	12.13%	36.17%
NVDA	75 Outperform	$2.83T	39.48	91.87%	0.03%	114.20%	146.26%
AMD	73 Outperform	$161.82B	97.92	2.85%	―	13.69%	91.75%
TXN	70 Outperform	$177.37B	37.50	28.39%	2.74%	-10.72%	-26.60%
AVGO	67 Neutral	$878.27B	151.86	8.71%	1.16%	43.99%	-62.55%
Sector *	59 Neutral	$22.39B	11.53	-18.05%	2.31%	5.00%	-25.89%
INTC	54 Neutral	$92.36B	―	-18.89%	2.20%	-2.08%	-1212.72%

Advanced Micro Devices Corporate Events

AMD Approves Executive Bonuses for Fiscal Year 2024

On February 18 and 19, 2025, Advanced Micro Devices, Inc.’s Board of Directors approved annual cash performance bonuses for its executive officers under the Executive Incentive Plan for fiscal year 2024. The bonuses, which are expected to be paid in March 2025, include $670,106 for Jean Hu, $665,593 for Phil Guido, $658,825 for Forrest Norrod, and $1,776,120 for Lisa T. Su. These awards reflect the company’s commitment to recognizing and rewarding the contributions of its leadership team, potentially impacting the company’s operational focus and stakeholder confidence.

AMD Achieves Record Revenue Driven by Data Center

In its financial results for the fourth quarter and full year 2024, AMD reported record revenue and earnings growth, driven largely by its Data Center segment where revenue nearly doubled due to increased adoption of EPYC processors and Instinct accelerators. Despite a decline in gaming and embedded segment revenues, AMD’s overall performance was strong, with a 24% year-over-year increase in fourth-quarter revenue and transformative annual growth across its portfolio, particularly in high-performance and adaptive computing.