Advanced Micro Devices, Inc.

XTRA:AMD Stock Report

Market Cap: €212.8b

Advanced Micro Devices Valuation

Is AMD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AMD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AMD (€130.9) is trading below our estimate of fair value (€216.23)

Significantly Below Fair Value: AMD is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AMD?

Key metric: As AMD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AMD. This is calculated by dividing AMD's market cap by their current earnings.
What is AMD's PE Ratio?
PE Ratio123.9x
EarningsUS$1.83b
Market CapUS$225.46b

Price to Earnings Ratio vs Peers

How does AMD's PE Ratio compare to its peers?

The above table shows the PE ratio for AMD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.9x
IFX Infineon Technologies
21.6x17.0%€37.8b
ELG Elmos Semiconductor
10.6x4.1%€1.1b
QCOM QUALCOMM
18.1x7.0%US$183.0b
TXN Texas Instruments
37.1x15.4%US$183.4b
AMD Advanced Micro Devices
123.9x40.5%€225.5b

Price-To-Earnings vs Peers: AMD is expensive based on its Price-To-Earnings Ratio (123.9x) compared to the peer average (21.9x).

Price to Earnings Ratio vs Industry

How does AMD's PE Ratio compare vs other companies in the European Semiconductor Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AMD 123.9xIndustry Avg. 14.0xNo. of Companies7PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AMD is expensive based on its Price-To-Earnings Ratio (123.9x) compared to the European Semiconductor industry average (14.6x).

Price to Earnings Ratio vs Fair Ratio

What is AMD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AMD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio123.9x
Fair PE Ratio44.4x

Price-To-Earnings vs Fair Ratio: AMD is expensive based on its Price-To-Earnings Ratio (123.9x) compared to the estimated Fair Price-To-Earnings Ratio (44.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AMD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€130.90
€174.70
+33.5%
11.4%€236.05€137.85n/a44
Nov ’25€131.20
€171.06
+30.4%
11.0%€229.85€134.23n/a43
Oct ’25€144.68
€169.66
+17.3%
12.1%€226.93€127.08n/a43
Sep ’25€132.18
€171.49
+29.7%
11.7%€228.98€128.23n/a43
Aug ’25€127.46
€175.60
+37.8%
11.2%€231.68€129.74n/a42
Jul ’25€145.76
€176.77
+21.3%
13.1%€233.80€116.90n/a42
Jun ’25€149.40
€172.93
+15.8%
13.5%€230.03€115.01n/a43
May ’25€149.82
€176.83
+18.0%
13.8%€233.83€116.91n/a43
Apr ’25€168.36
€180.48
+7.2%
15.4%€248.51€124.25n/a43
Mar ’25€184.20
€177.83
-3.5%
14.0%€249.51€124.75n/a43
Feb ’25€154.06
€171.11
+11.1%
15.7%€249.89€115.69n/a43
Jan ’25€135.28
€123.95
-8.4%
14.7%€181.78€89.07n/a43
Dec ’24€110.92
€121.50
+9.5%
15.1%€183.76€90.04n/a42
Nov ’24€100.60
€124.70
+24.0%
15.4%€189.26€92.74€131.2042
Oct ’24€97.67
€132.06
+35.2%
13.5%€187.56€89.09€144.6841
Sep ’24€100.58
€127.73
+27.0%
14.1%€182.48€86.68€132.1841
Aug ’24€105.88
€122.14
+15.4%
18.4%€181.88€76.39€127.4641
Jul ’24€104.22
€120.02
+15.2%
21.0%€182.82€73.13€145.7639
Jun ’24€111.38
€100.21
-10.0%
23.6%€187.14€72.05€149.4039
May ’24€79.17
€90.58
+14.4%
22.5%€182.30€61.98€149.8237
Apr ’24€89.28
€88.71
-0.6%
23.8%€183.38€61.43€168.3638
Mar ’24€73.24
€86.73
+18.4%
23.8%€186.20€62.38€184.2036
Feb ’24€73.92
€83.19
+12.5%
24.5%€182.06€59.17€154.0636
Jan ’24€59.90
€84.16
+40.5%
26.6%€188.22€56.47€135.2837
Dec ’23€73.67
€87.32
+18.5%
26.4%€195.24€58.57€110.9238
Nov ’23€61.19
€93.64
+53.0%
26.8%€202.44€60.73€100.6037

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

ACM Research

US$1.2b

Develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide.

813

US$17.68

7D

0.06%

1Y

8.2%

Renesas Electronics

JP¥3.7t

Researches, develops, designs, manufactures, sells, and services semiconductors in Japan, China, rest of Asia, Europe, North America, and internationally.

NEN0

JP¥6.00

7D

-6.3%

1Y

n/a

ON Semiconductor

US$28.3b

Provides intelligent sensing and power solutions in the United States and internationally.

XS4

US$63.28

7D

-3.9%

1Y

1.4%