Advanced Micro Devices, Inc.

NasdaqGS:AMD Stock Report

Market Cap: US$193.5b

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 ($119.21) is trading below our estimate of fair value ($219.46)

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 Ratio105.9x
EarningsUS$1.83b
Market CapUS$193.45b

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 Average35.4x
QCOM QUALCOMM
16.8x7.1%US$169.9b
TXN Texas Instruments
34.5x15.2%US$170.5b
ADI Analog Devices
64.3x22.6%US$105.1b
MU Micron Technology
25.9x26.6%US$100.4b
AMD Advanced Micro Devices
105.9x40.0%US$193.5b

Price-To-Earnings vs Peers: AMD is expensive based on its Price-To-Earnings Ratio (105.9x) compared to the peer average (35.4x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SQNS Sequans Communications
1.7x-156.5%US$72.23m
MMAT.Q Meta Materials
n/an/aUS$6.00
No more companies available in this PE range
AMD 105.9xIndustry Avg. 29.1xNo. of Companies11PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AMD is expensive based on its Price-To-Earnings Ratio (105.9x) compared to the US Semiconductor industry average (29.1x).

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 Ratio105.9x
Fair PE Ratio54.3x

Price-To-Earnings vs Fair Ratio: AMD is expensive based on its Price-To-Earnings Ratio (105.9x) compared to the estimated Fair Price-To-Earnings Ratio (54.3x).

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
CurrentUS$119.21
US$183.16
+53.6%
12.4%US$250.00US$145.00n/a44
Dec ’25US$137.18
US$185.03
+34.9%
11.4%US$250.00US$146.00n/a44
Nov ’25US$141.86
US$186.06
+31.2%
11.0%US$250.00US$146.00n/a43
Oct ’25US$159.75
US$186.91
+17.0%
12.1%US$250.00US$140.00n/a43
Sep ’25US$148.56
US$187.24
+26.0%
11.7%US$250.00US$140.00n/a43
Aug ’25US$132.54
US$189.49
+43.0%
11.2%US$250.00US$140.00n/a42
Jul ’25US$157.69
US$189.02
+19.9%
13.1%US$250.00US$125.00n/a42
Jun ’25US$166.90
US$187.95
+12.6%
13.5%US$250.00US$125.00n/a43
May ’25US$144.27
US$189.07
+31.1%
13.8%US$250.00US$125.00n/a43
Apr ’25US$183.34
US$196.09
+7.0%
15.4%US$270.00US$135.00n/a43
Mar ’25US$202.64
US$192.44
-5.0%
14.0%US$270.00US$135.00n/a43
Feb ’25US$170.48
US$184.89
+8.5%
15.7%US$270.00US$125.00n/a43
Jan ’25US$147.41
US$136.37
-7.5%
14.7%US$200.00US$98.00n/a43
Dec ’24US$121.39
US$132.24
+8.9%
15.1%US$200.00US$98.00US$137.1842
Nov ’24US$108.04
US$131.77
+22.0%
15.4%US$200.00US$98.00US$141.8642
Oct ’24US$102.82
US$140.81
+37.0%
13.5%US$200.00US$95.00US$159.7541
Sep ’24US$109.45
US$139.99
+27.9%
14.1%US$200.00US$95.00US$148.5641
Aug ’24US$117.60
US$134.31
+14.2%
18.4%US$200.00US$84.00US$132.5441
Jul ’24US$113.91
US$131.30
+15.3%
21.0%US$200.00US$80.00US$157.6939
Jun ’24US$119.47
US$107.10
-10.4%
23.6%US$200.00US$77.00US$166.9039
May ’24US$89.69
US$99.37
+10.8%
22.5%US$200.00US$68.00US$144.2737
Apr ’24US$98.01
US$96.76
-1.3%
23.8%US$200.00US$67.00US$183.3438
Mar ’24US$78.29
US$93.16
+19.0%
23.8%US$200.00US$67.00US$202.6436
Feb ’24US$84.64
US$91.39
+8.0%
24.5%US$200.00US$65.00US$170.4836
Jan ’24US$64.77
US$89.43
+38.1%
26.6%US$200.00US$60.00US$147.4137
Dec ’23US$77.48
US$89.45
+15.4%
26.4%US$200.00US$60.00US$121.3938

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

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:05
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/28
Annual Earnings2023/12/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Advanced Micro Devices, Inc. is covered by 95 analysts. 49 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Qun HuangABCI Securities Company Limited
Stefan ChangAletheia Analyst Network Limited
Warren LauAletheia Analyst Network Limited