| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
AMD Stock Overview
Advanced Micro Devices, Inc. operates as a semiconductor company worldwide.
Rewards
Risk Analysis
Advanced Micro Devices Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$63.36 |
| 52 Week High | US$164.46 |
| 52 Week Low | US$62.83 |
| Beta | 1.97 |
| 1 Month Change | -21.04% |
| 3 Month Change | -14.00% |
| 1 Year Change | -38.16% |
| 3 Year Change | 118.41% |
| 5 Year Change | 378.91% |
| Change since IPO | 1,436.00% |
Recent News & Updates
AMD: Buy During This Panic
Summary AMD has dropped by more than 60% from its 52-week high. A high valuation has turned into a pretty low valuation. AMD is executing well and should continue to gain market share as its energy-efficient products become even more compelling with electricity prices soaring. AMD can buy back shares cheaply, thanks to strong FCF conversion and a strong balance sheet. Article Thesis Advanced Micro Devices (NASDAQ:AMD) has slumped massively in recent months. The company has a strong product lineup and is gaining market share and management is positive about its future. At the same time, AMD is priced for a massive downturn in end markets, even though the market is not factoring that into the share prices of customers such as Apple (AAPL) yet. With AMD trading at a historically low valuation and being able to buy back shares cheaply, it looks attractively priced during the current market panic. Positioned For Long-Term Growth Advanced Micro Devices looks like a company that should grow at an above-average rate over the medium to long term, no matter whether there is a temporary downturn in the very near term or not. The company offers attractive products that allow it to gain market share in important end markets, such as data centers. AMD's EPYC processors have advantages over competing data center products when it comes to energy efficiency, for example. That's becoming a better and better argument for data center companies to buy AMD's products, as the global energy crisis has made electricity costs explode around the world. In Europe, for example, electricity costs have gone up by several hundred percentage points. Since electricity costs are a major part of data center expenses, companies will be inclined to go with AMD's products that use resources more efficiently and that will allow them to save money when it comes to operating expenses. AMD is pursuing its data center approach via M&A as well, e.g. by acquiring Pensando. This acquisition closed in summer and expands AMD's capabilities in the data center space. Its chips help perform "overhead" functions in data centers more efficiently, which helps AMD establish itself further as the efficiency leader in the data center space, providing significant competitive advantages versus peers that aren't offering products that are comparably energy efficient and therefore running at comparatively low costs. Advanced Micro Devices' business growth in the data center space has been well above the industry average, as the company was able to grow its revenue in this area by 83% year over year during the most recent quarter, outperforming NVIDIA (NVDA), which is also struggling in the GPU space, and especially Intel (INTC), which saw its data center revenue fall year over year. The data center market overall is forecasted to grow at a low-double digit rate over the next couple of years, which is pretty attractive already. But since AMD has been gaining market share for quite some time, and since rising energy costs make its energy-efficient product lineup even more appealing, I believe that it is highly likely that AMD will grow at a significantly faster pace than the overall market going forward. For the current quarter, AMD has guided towards revenue growth of 55% year over year, led by data center growth. Of course, growth will not always be this high. Right now it's partially fueled by M&A, which will not always be the case. On top of that, the law of large numbers dictates that maintaining a very high relative growth rate becomes harder over time, thus investors will have to accept a slower revenue growth rate in the long run. But at current valuations, AMD is almost priced for a no-growth scenario, and its growth will be very solid still. Even if AMD were to grow its revenue by just 15% a year over the next couple of years, that would be highly attractive, considering its very undemanding current valuation. Advantaged Versus Peers Versus its two core peers Intel and NVIDIA, AMD looks very advantaged. Intel is struggling in many different ways, e.g. by losing market share in the data center space, by seeing its margins come under pressure, and due to its free cash flow being very weak -- even negative. NVIDIA is better-positioned than Intel, but looks nevertheless like it is struggling more than AMD on an operational basis. Its data center business growth rate is strong, but not as strong as that of AMD. It is also way more exposed to the cryptocurrency bear market, which has resulted in slumping GPU sales for NVIDIA as cryptocurrency miners buy less equipment. Last but not least, NVIDIA still trades at a pretty high valuation, unlike Advanced Micro Devices. A higher valuation naturally allows for more downside potential and makes the more expensive stock riskier, all else equal. Buybacks Are Getting More Efficient By The Day Advanced Micro Devices is a company that operates with a very clean balance sheet. The most recent 10-Q shows the following data: AMD 10-Q Netting the cash position against AMD's debt gets us to a net cash pile of $3.2 billion. A net cash position naturally reduces risks for a company during any kind of crisis or downturn. In the current rising rates environment, a net cash position also protects AMD versus rising interest expenses, a headwind that will pressure the profitability of more indebted companies over the coming years. But AMD's net cash position also means that the company has great optionality when it comes to further M&A, and that Advanced Micro Devices can be aggressive with shareholder returns if it wants to. AMD is currently not paying any dividend, and I believe this will remain the case. Thus, shareholder returns would come in the form of stock repurchases. At the current valuation, and considering AMD's strong long-term growth potential, those buybacks could be highly value generating, I believe. Every share that AMD buys back at the current very undemanding valuation means that future profits will be distributed over a lower number of shares, increasing each remaining share's portion of the "earnings pie" forever. AMD's management seems to agree with that assessment, which is why the company has hiked its share repurchase authorization to $12 billion this year. That covers around 11% of the company's current market capitalization. If fully executed at or close to current valuations, this repurchase program could thus have a large impact on AMD's share count, in turn giving a nice boost to the company's earnings per share. Much has been said about Apple's buybacks, but those averaged only around 4% per year in the past -- and even that had a pretty large impact over several years. Since AMD is currently trading with an earnings yield of 7%, it could buy back shares way more aggressively than Apple did in the past (on a relative basis). This is especially true in case AMD decides to spend some of the cash it currently holds on its balance sheet.
AMD: A $200+ Stock When The Market Wakes Up
Summary AMD's stock has been undeservedly hammered (down 60% from highs) due to weakness in other semiconductor firms. However, AMD has reported earnings growth (67% growth YoY), guided higher, and recently implicitly reaffirmed their guidance. Even if economic conditions are challenging, AMD earnings are set to explode higher. AMD is trading at 15x current earnings and 7x predicted 2023 earnings. It's a coiled spring ready to rocket when the market wakes up. Advanced Micro Devices, Inc. (AMD) has grown revenues 85% CAGR the past 2 years despite being supply constrained. The company is gaining market share and increasing margins, and has a lot of room to grow. The company is likely to be earning at a $10/share rate in a year. So why is the stock trading at less than 7x my earnings outlook? The market is failing to see what is really going on. Market Mistakes Semi Inventory Correction for End of Cycle For a couple years now, we’ve seen people calling for the end of the semiconductor market cycle. Those calls have intensified now as the industry has entered an inventory correction. What happened is that a lot of demand for PCs was pulled forward due to COVID and work/learn from home needs increased. And as supply chains were disrupted, manufacturers increased inventories. This has been a well-known phenomenon, and widely talked about the past couple years. The correction is playing out as expected. Meanwhile, while there are pockets of weakness in PCs (COVID reset), and gaming (Ethereum demand ending), overall demand is still running along. The economy is still running hot, and unemployment is still close to record lows at 3.7%. There is little reason to expect the end of the semiconductor cycle to be at hand. Nevertheless, some market participants have been indiscriminately hammering semis, and sending AMD down without respect to its strong fundamentals. Market Mistakes Semi Weakness for AMD Weakness COVID-related PC demand and Ethereum mining demand are the two major forces driving the inventory correction. As a result, a select set of semiconductor firms heavily dependent on those sources of demand have missed earnings and had to bring their guidance down dramatically. Intel (INTC) and Nvidia (NVDA) are firms with much more concentrated exposure to these two demand drop-offs, and they sold off as a result. But other firms, like AMD, are not as susceptible to these sources of demand weakness. During their Q2 earnings, AMD noted that they were seeing weakness in PCs and Gaming and guided with that data in mind. And around a week ago, with only 2 weeks left in Q3, AMD management implicitly reaffirmed their Q3 guide and forward looking growth prospects, in large part thanks to strength in the high-margin datacenter. It makes sense to sell INTC and NVDA on their weakness, especially as they should continue to lose market share to AMD. It does not make sense to sell AMD based on the weakness of competitors that AMD is taking share from. Market Mistakenly Thinks AMD/NVDA Should Trade Together Having followed AMD and NVDA daily for years, I can attest that the two stocks are often traded in tandem. The market got used to this kind of activity and appears to be continuing it even when it no longer makes sense. While AMD used to be heavily exposed to gaming GPU sales, now that is a small minority of their sales. AMD doesn’t disclose gaming GPU sales revenues on their own, but a reasonable estimate is they comprised 15% of revenues in Q1. Since AMD went to meaningful lengths to focus on supplying GPUs to OEMs and gamers, likely half or more of those sales were to actual gamers (instead of for crypto mining). In contrast, GPUs in the Gaming and Pro Viz segments comprised the majority of Nvidia’s revenues in Q1. And, Nvidia was shrewdly taking advantage of the crypto mining demand, and made a ton of money selling to miners. It now appears that the majority of their Gaming and Pro Viz segments was actually for crypto mining, and not actual gamers and designers. Now that the market is starting to realize that Nvidia’s sales were substantially inflated and unsustainable, the stock is down 65% from its highs. This is reasonable given how obscene NVDA’s valuation was, at over 100x TTM earnings at the peak—and much of those earnings was from crypto mining demand that is gone permanently. But selling off AMD to this degree is nonsensical. AMD does not have close to the same level of crypto exposure that Nvidia did. For Q2, AMD beat earnings and guided higher. For Q2, NVDA had horrendous earnings, guided lower, and then guided lower again due to Chinese sales restrictions (which AMD disclosed has no material impact on their business). The market has mistakenly sold AMD down as NVDA has fallen, despite widely divergent fundamentals. This error should be reversed in time. Market Mistakenly Thinks AMD is High PE Stock AMD has historically been a high P/E stock due to its strong growth prospects. The market appears to mistakenly believe that it is still a high P/E stock and should be traded like one, sending it down 5% in a day on a whim. I also see traders including AMD in their list of high P/E stocks to sell on weakness in the indexes. The market appears to be slow to catch on that AMD is now trading at about 15 times current earnings—below the average P/E ratio for the S&P 500, and Nasdaq. Perhaps traders need to update their P/E ratio calculations. Or perhaps the market is confused because GAAP earnings are significantly lower than non-GAAP earnings (and Free Cash Flow) due to amortizing the charges related to the Xilinx acquisition. Regardless of the reason, I expect that this error will be corrected over time as earnings keep growing and the company buys back more and more of the stock float. Reality: AMD Grew Earnings, Guided Higher, and Implicitly Reaffirmed Guide Recently The reality is that while certain other firms were seeing sharp falloffs in their business, AMD was still growing. During their Q2 earnings call, AMD management noted that they were seeing weakness in PCs and Gaming, and incorporated that into their Q3 guide. And in an investor Q&A discussion with 2 weeks left in Q3, AMD management implicitly reaffirmed their Q3 guide, citing weakness in PCs and Gaming offset by strength in Datacenter and Consoles. AMD should not have been sold because of weakness in other firms, when AMD was beating earnings and raising their guide, and reaffirming their guide, and had credible reasons for doing so. Growth Prospects for the Next Year Datacenter Due to the high margins and AMD’s dominant product offerings, which are only going to get better in the coming months as 4th generation EPYC Genoa is launched, Datacenter is where AMD’s profit growth is most likely to continue to explode upwards. AMD should soon start taking majority market share in the hyperscaler segment, and make serious inroads in enterprise. While all indications are that the datacenter market remains strong, AMD sales should grow significantly even if the overall datacenter market demand drops off meaningfully, as AMD takes greater market share from Intel. AMD is also poised to launch CDNA 3, the next generation of their Instinct datacenter GPU product. While their earlier versions of Instinct showed significant progress, and started taking market share, the 3rd generation is described by AMD management as their first leadership product in the space. While I am not modeling significant share gains in the next year, there is a strong chance that AMD does well in this area, and that provides upside to my model. Xilinx and Pensando are also poised to grow nicely in the datacenter their own right, as well as increase sales of EPYC and Instinct with AMD datacenter bundling. I am not modeling significant gains here, so contributions here would provide upside to my model. Overall, even with potentially difficult economic conditions developing over the next year, it’s hard to see AMD Datacenter not growing significantly over the next year. This segment grew 83% in the last year, despite significant supply constraints in EPYC. Management is reporting that they expect supply to catch up soon and that EPYC has now hit an inflection point in growth. I am modeling 65% growth in this segment, and I view this as conservative. I would not be surprised to see the segment double or better over the next year, which would provide upside to my model. Given the high margins in this segment, much of the revenue growth drops right to the bottom line. Client AMD management confirmed at the Q&A recently that they have continued to be supply constrained in the Client segment, even during the recent PC downturn. AMD has had to focus mostly on the high end products and let Intel capture the low end. But management also confirmed that they have secured enough supply to start competing across the stack starting in Q4. So the residual inventory drawdown occurring in the PC market will limit overall growth in the segment, but this will mostly come out of Intel’s business. AMD sales should continue to grow as they take share aggressively at the high end as well as competing again across the stack. And in 2023, Intel will still not be able to compete with AMD’s performance at the high end. Even with the inventory reset in progress, this segment should grow 20% over the next year. Gaming Gaming is a bit of a question mark for the next year. On the one hand, AMD is set to introduce their updated RNDA 3 GPUs, which for a variety of reasons (outside the scope of the article) are set up to be cheaper to produce than Nvidia’s new Ada Lovelace cards, and have very strong competitive performance compared to Nvidia’s new cards (with the possible exception of ray tracing). And for a variety of reasons, AMD should take a lot of share in the laptop segment. On the other hand, since a huge portion of “gaming” GPU demand in recent years has gone to crypto miners, it’s unclear how much demand there actually will be from real gamers. The segment should recede from the mining highs. In sum, AMD should take a good chunk of market share from Nvidia, from a segment that will be down YoY. As a result, I expect AMD’s Gaming numbers to be roughly flat. Embedded I model this segment at 20% growth over the next year. There are some products that could drive growth significantly higher, but I will be conservative and look beyond them. $10 EPS Rate Likely Next Year In sum, I model that the growth in these segments should boost quarterly EPS to around $2.50 exiting 2023, a $10 per share run rate, with the growth in EPS coming heavily from the Datacenter segment. $200+ is Likely as the Market Wakes up AMD’s earnings grew 67% YoY in Q2, despite the inventory and crypto demand issues that caused Intel and Nvidia’s earnings to fall off a cliff. I am projecting AMD’s earnings to more than double by the end of next year. What’s an appropriate multiple for a tech company growing earnings around 60% to 100% per year? Often that kind of growth attracts a multiple of over 50. But let’s be more conservative. Management has guided for 20% long term revenue growth, and for higher margins. Current management has a long history of sandbagging guidance to the point that it is a joke.
AMD: The Dislocation Between The Stock And The Industry
Summary Not all semi stocks are the same. The industry-wide selloff has produced dislocations in value - such as AMD. AMD is a market share gain story. The macrocycle influences all fundamentals, but the selloff seems to be pricing in excessive pessimism. AMD remains under-represented in the data center despite its recent gains in the opportunity. The growth here should continue against a $50B+ TAM. At an NTM P/E of 17.2x, AMD is undervalued. Market is likely pricing in more earnings contraction, but risk/reward is present for long-term investors. Long-term, the world will continue needing more data, and more computing. Investors should take comfort in this fact when looking beyond a recession.
AMD: Building Resilience Amidst Economic Uncertainty
Summary Despite the semiconductor headwinds, AMD's acquisitions of Xilinx and Pensando can lead to best-in-class growth, offsetting the projected weakness in gaming over the next year. AMD remains on track on its new product roadmap, and the upcoming 4nm-based Zen 5 launch in 2024 targets more performance gains with further optimization for AI workloads. AMD is improving its competitiveness across CPU and GPU products with Ryzen, EPYC, and Radeon Vega platforms, expanding its market share. Despite the worsening macroeconomic environment and the escalating US-China tensions, AMD is a strong buy at current levels. Investment Thesis Advanced Micro Devices, Inc. (NASDAQ:AMD), it's a stock I always avoided due to the hype and overvaluation. However, despite the current uncertainty in the market and headwinds in the semiconductor sector, I cannot ignore its impressive growth prospects and very attractive valuation point. As a result, AMD has entered my strong buying zone, but I wouldn't overweight a position yet. Thus, in the below analysis, we review some of the recent developments and the company's market outlook. Strong Growth Trajectory AMD reported a record quarterly revenue of $6.6 billion, up 70% year-over-year, driven by margin expansion and growth across all segments and acquisitions. Data centers remain the company's fastest-growing segment, reporting an 83% increase in the previous quarter, and with the current momentum, it might overtake the gaming and client segments which are AMD's largest revenue-producing sources. Data Center - Xilinx & Pensando A continued focus on expanding its data-center market share organically and through acquisitions like Xilinx and Pensando can lead to best-in-class growth, offsetting the projected weakness in gaming over the next year. Not surprisingly, gross profit margins have expanded due to higher Xilinx sales, and it is expected for AMD to further leverage FPGAs in the data center segment leading to improved margins. AMD Q2 Results The recent acquisitions of Xilinx and Pensando will allow the company to expand its data center footprint and market opportunity even further in the cloud, enterprise, and HPC markets. Finally, the company is well-positioned to gain market share in server CPU with its aggressive technology/product roadmap. Gaining Share In Data Center With EPYC The management commented in the earnings call that they saw record server CPU revenue in Q2, assisted by more than 60 new AMD-powered instances deployed at AWS (AMZN), Baidu (BIDU), Google (GOOG) (GOOGL), Microsoft (MSFT) Azure, and Oracle (ORCL). In addition, despite macro uncertainty and some matched set issues, enterprise adoption of AMD continues to accelerate at Dell (DELL), HP Enterprise (HPE), Lenovo (OTCPK:LNVGY), Supermicro, and Cisco (CSCO). JPMorgan recently conducted a survey of 142 CIOs who manage ~$100 billion of annual enterprise IT spending power and revealed that there is a significant increase in intent to adopt AMD's EPYC server CPUs in both on-prem enterprise and cloud servers. In addition, AMD's 3rd Gen 7nm EPYC platform launched in 2021 has gained significant traction in the cloud (>500 EPYC-based cloud instances available) and enterprise (>25 large enterprise corporations deploying EPYC-based servers), including Google Cloud. Launch Of New Zen 4-based Ryzen 7000 AMD recently announced the Ryzen 7000 Series of client CPUs based on its next-gen Zen 4 architecture built on TSMC's 5nm process node that features up to 16 cores with support for the latest storage and memory interface technology and boasts significant performance and power improvements relative to the prior Zen 3-based Ryzen 5000 series. In addition, the new series achieves incrementally better benchmarks compared to Intel Corporation's (INTC) current Alder Lake processors. AMD introduced four new SKUs for the Ryzen 7000 series, spanning 16 cores at the top end and 6 seats at the low end. Compared to the prior-gen Zen 3-based Ryzen 5000 Series, the Ryzen 7000 Series boasts a 13% average uplift to instruction per clock (IPC) over 22 desktop workloads with a 29% improvement in single-threaded performance and 27% better performance-per-watt. The new models, which will be available from September 27, are good news for gamers, video editors, and anybody who demands high performance. Built on an optimized, high-performance, TSMC 5nm process node, the Ryzen 7000 Series processors will offer high performance and leading energy efficiency. In addition, the AMD Ryzen 7950X processor enables up to 15% faster gaming performance than the previous generation. AMD Premiere (YouTube) On-time Zen 4 launch sets the stage for continued roadmap execution. The company also indicated that it remains on track on its new product roadmap, with a new desktop CPU supporting 3D V-cache for memory-intensive workloads. In addition, the 4nm-based Zen 4c will be available in server CPUs in 2023. It will deliver the identical functionality of a Zen 4 in half the core area targeted for applications that don't need to run at the highest frequency. Finally, looking further out, the 4nm-based Zen 5 is on track for 2024, targeting more performance gains with further optimization for AI workloads. Last but not least, following on the heels of its 4th generation Zen 4-based 5nm "Genoa" general-purpose server CPU in Q4 2022, which promises 75%+ higher performance than the Zen 3 version, the AMD team is planning to ramp a Zen 4c-based "Bergamo" cloud-native server CPU with 2x cloud container density vs. the Zen 3 version in 2023. AMD has achieved meaningful progress within 2022, and with the current momentum, its roadmap seems highly attainable. AMD's Roadmap (AnandTech) Zen 4 Ryzen 7000 Vs. Intel Alder & Raptor Lake While AMD's new Ryzen 7000 series client CPU platform certainly raises the performance standards, the lead will likely be short-lived given Intel's competing Raptor Lake, just around the corner, which is expected to launch as early as October of this year. Based on early reviews, the generation-to-generation performance gains in Intel Raptor Lake will likely be on par with AMD's Zen 4, which would mean the two companies will again be head-to-head with each other after Intel regained parity in client CPU with Alder Lake late last year. As for pricing, AMD priced the flagship Ryzen 9 7950X at $699, $100 less than the top-of-the-line 5950X of the prior Ryzen 5000 Series, which could be in anticipation of the competitive environment ahead with the upcoming Raptor Lake launch. Worsening Macro Environment; Headwinds AMD typically derives ~50% of its revenue from the core PC end market, which is highly correlated with macroeconomic conditions. Therefore, if the PC end market is weaker/stronger than expected, then this could lead to a decrease/increase in microprocessor and GPU shipments, which could result in a downward/upward revision of our revenue and EPS estimates for AMD. Despite AMD's positive outlook on the H2 of the year, I anticipate a global demand slowdown which will pose headwinds to both PC and server TAM. Over the last month, several chipmakers, including Micron (MU), Intel, AMD, and Nvidia (NVDA), warned of a worsening outlook for the second half of this year and have warned of weaker export orders. Moreover, shrinking tech demand highlights a gloomier outlook for the sector as Russia's conflict with Ukraine and increasing interest rates dampen economic activity.
Shareholder Returns
| AMD | US Semiconductor | US Market | |
|---|---|---|---|
| 7D | -6.8% | -3.9% | -2.5% |
| 1Y | -38.2% | -28.9% | -23.2% |
Return vs Industry: AMD underperformed the US Semiconductor industry which returned -28.9% over the past year.
Return vs Market: AMD underperformed the US Market which returned -23.2% over the past year.
Price Volatility
| AMD volatility | |
|---|---|
| AMD Average Weekly Movement | 7.1% |
| Semiconductor Industry Average Movement | 7.8% |
| Market Average Movement | 6.8% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.8% |
Stable Share Price: AMD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: AMD's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1969 | 15,500 | Lisa Su | https://www.amd.com |
Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom. Its products include x86 microprocessors as an accelerated processing unit, chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services; and server and embedded processors, and semi-custom System-on-Chip (SoC) products, development services, and technology for game consoles.
Advanced Micro Devices Fundamentals Summary
| AMD fundamental statistics | |
|---|---|
| Market Cap | US$102.28b |
| Earnings (TTM) | US$3.13b |
| Revenue (TTM) | US$21.58b |
32.7x
P/E Ratio4.7x
P/S RatioIs AMD overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| AMD income statement (TTM) | |
|---|---|
| Revenue | US$21.58b |
| Cost of Revenue | US$10.63b |
| Gross Profit | US$10.95b |
| Other Expenses | US$7.82b |
| Earnings | US$3.13b |
Last Reported Earnings
Jun 25, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.94 |
| Gross Margin | 50.75% |
| Net Profit Margin | 14.51% |
| Debt/Equity Ratio | 5.0% |
How did AMD perform over the long term?
See historical performance and comparisonValuation
Is AMD undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for AMD?
Other financial metrics that can be useful for relative valuation.
| What is AMD's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$102.28b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 4.6x |
| Enterprise Value/EBITDA | 17.7x |
| PEG Ratio | 1.3x |
Price to Earnings Ratio vs Peers
How does AMD's PE Ratio compare to its peers?
| AMD PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 17.5x | ||
QCOM QUALCOMM | 9.9x | 0.04% | US$126.9b |
ADI Analog Devices | 38x | 12.4% | US$71.7b |
INTC Intel | 5.5x | 3.3% | US$105.8b |
TXN Texas Instruments | 16.6x | -3.3% | US$141.4b |
AMD Advanced Micro Devices | 32.7x | 25.6% | US$102.3b |
Price-To-Earnings vs Peers: AMD is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the peer average (17.5x).
Price to Earnings Ratio vs Industry
How does AMD's PE Ratio compare vs other companies in the US Semiconductor Industry?
Price-To-Earnings vs Industry: AMD is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the US Semiconductor industry average (15.5x)
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 32.7x |
| Fair PE Ratio | 43.5x |
Price-To-Earnings vs Fair Ratio: AMD is good value based on its Price-To-Earnings Ratio (32.7x) compared to the estimated Fair Price-To-Earnings Ratio (43.5x).
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 ($63.36) is trading below our estimate of fair value ($160.61)
Significantly Below Fair Value: AMD is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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Future Growth
How is Advanced Micro Devices forecast to perform in the next 1 to 3 years based on estimates from 39 analysts?
Future Growth Score
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
25.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AMD's forecast earnings growth (25.6% per year) is above the savings rate (1.9%).
Earnings vs Market: AMD's earnings (25.6% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: AMD's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AMD's revenue (12% per year) is forecast to grow faster than the US market (7.7% per year).
High Growth Revenue: AMD's revenue (12% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AMD's Return on Equity is forecast to be low in 3 years time (15.6%).
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Past Performance
How has Advanced Micro Devices performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
66.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AMD has high quality earnings.
Growing Profit Margin: AMD's current net profit margins (14.5%) are lower than last year (25.8%).
Past Earnings Growth Analysis
Earnings Trend: AMD has become profitable over the past 5 years, growing earnings by 66.6% per year.
Accelerating Growth: AMD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AMD had negative earnings growth (-8.7%) over the past year, making it difficult to compare to the Semiconductor industry average (49.2%).
Return on Equity
High ROE: AMD's Return on Equity (5.7%) is considered low.
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Financial Health
How is Advanced Micro Devices's financial position?
Financial Health Score
6/6Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: AMD's short term assets ($13.5B) exceed its short term liabilities ($5.5B).
Long Term Liabilities: AMD's short term assets ($13.5B) exceed its long term liabilities ($6.8B).
Debt to Equity History and Analysis
Debt Level: AMD has more cash than its total debt.
Reducing Debt: AMD's debt to equity ratio has reduced from 340% to 5% over the past 5 years.
Debt Coverage: AMD's debt is well covered by operating cash flow (133.4%).
Interest Coverage: AMD's interest payments on its debt are well covered by EBIT (80.7x coverage).
Balance Sheet
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Dividend
What is Advanced Micro Devices's current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
Dividend Yield vs Market
| Advanced Micro Devices Dividend Yield vs Market |
|---|
| Segment | Dividend Yield |
|---|---|
| Company (Advanced Micro Devices) | n/a |
| Market Bottom 25% (US) | 1.7% |
| Market Top 25% (US) | 4.7% |
| Industry Average (Semiconductor) | 2.1% |
| Analyst forecast in 3 Years (Advanced Micro Devices) | 0% |
Notable Dividend: Unable to evaluate AMD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate AMD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if AMD's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if AMD's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as AMD has not reported any payouts.
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Management
How experienced are the management team and are they aligned to shareholders interests?
6.5yrs
Average management tenure
CEO
Lisa Su (52 yo)
8yrs
Tenure
US$29,498,107
Compensation
Dr. Lisa T. Su, Ph D., has been Independent Director at Cisco Systems, Inc. since January 27, 2020. She serves as Chair at Advanced Micro Devices, Inc since February 2022.Dr. Su has been the Chief Executi...
CEO Compensation Analysis
| Lisa Su's Compensation vs Advanced Micro Devices Earnings |
|---|
| Date | Total Comp. | Salary | Company Earnings |
|---|---|---|---|
| Jun 25 2022 | n/a | n/a | US$3b |
| Mar 26 2022 | n/a | n/a | US$3b |
| Dec 25 2021 | US$29m | US$1m | US$3b |
| Sep 25 2021 | n/a | n/a | US$4b |
| Jun 26 2021 | n/a | n/a | US$3b |
| Mar 27 2021 | n/a | n/a | US$3b |
| Dec 26 2020 | US$27m | US$1m | US$2b |
| Sep 26 2020 | n/a | n/a | US$879m |
| Jun 27 2020 | n/a | n/a | US$609m |
| Mar 28 2020 | n/a | n/a | US$487m |
| Dec 28 2019 | US$59m | US$1m | US$341m |
| Sep 28 2019 | n/a | n/a | US$209m |
| Jun 29 2019 | n/a | n/a | US$191m |
| Mar 30 2019 | n/a | n/a | US$272m |
| Dec 29 2018 | US$13m | US$961k | US$337m |
| Sep 29 2018 | n/a | n/a | US$280m |
| Jun 30 2018 | n/a | n/a | US$239m |
| Mar 31 2018 | n/a | n/a | US$81m |
| Dec 30 2017 | US$11m | US$925k | -US$33m |
| Sep 30 2017 | n/a | n/a | -US$65m |
| Jul 01 2017 | n/a | n/a | -US$532m |
| Apr 01 2017 | n/a | n/a | -US$421m |
| Dec 31 2016 | US$12m | US$886k | -US$498m |
| Sep 24 2016 | n/a | n/a | -US$548m |
| Jun 25 2016 | n/a | n/a | -US$339m |
| Mar 26 2016 | n/a | n/a | -US$589m |
| Dec 26 2015 | US$7m | US$850k | -US$660m |
Compensation vs Market: Lisa's total compensation ($USD29.50M) is above average for companies of similar size in the US market ($USD13.04M).
Compensation vs Earnings: Lisa's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AMD's management team is seasoned and experienced (6.5 years average tenure).
Board Members
Experienced Board: AMD's board of directors are considered experienced (5.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AMD insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Date | Value | Name | Entity | Role | Shares | Max Price |
|---|---|---|---|---|---|---|
| 05 Aug 22 | SellUS$4,088,800 | Forrest Norrod | Individual | 40,000 | US$102.22 |
Ownership Breakdown
| Owner Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Private Companies | 110,185 | 0.007% |
| State or Government | 714,292 | 0.04% |
| Individual Insiders | 8,247,008 | 0.5% |
| General Public | 524,744,686 | 32.5% |
| Institutions | 1,080,504,729 | 66.9% |
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 33.1%.
Top Shareholders
| Ownership | Name | Shares | Current Value | Change % | Portfolio % | |
|---|---|---|---|---|---|---|
| 133,645,149 | $8.5b | 0.09% | 0.2% | |||
| 116,372,092 | $7.4b | -2.67% | 0.19% | |||
| 65,117,714 | $4.1b | -0.7% | 0.24% | |||
| 53,555,616 | $3.4b | 0.59% | 0.41% | |||
| 46,261,504 | $2.9b | 6.46% | 0.28% | |||
| 28,305,180 | $1.8b | 2.44% | 0.24% | |||
| 27,373,344 | $1.7b | -5.98% | 0.33% | |||
| 25,143,103 | $1.6b | 3.1% | 1.2% | |||
| 16,507,842 | $1.0b | -3.39% | 0.22% | |||
| 14,594,025 | $924.7m | -1.02% | 0.18% | |||
| 14,531,023 | $920.7m | -5.58% | 0.21% | |||
| 13,646,800 | $864.7m | 6.76% | 0.36% | |||
| 13,038,483 | $826.1m | 6.44% | 0.86% | |||
| 12,152,174 | $770.0m | 4.31% | 0.24% | |||
| 12,120,241 | $767.9m | -8.27% | 0.27% | |||
| 11,889,497 | $753.3m | -32.6% | 0.14% | |||
| 10,992,048 | $696.5m | 19.42% | 0.53% | |||
| 9,889,729 | $626.6m | 0% | 0.09% | |||
| 8,533,127 | $540.7m | 9.8% | 0.31% | |||
| 8,161,649 | $517.1m | -5.94% | 0.18% | |||
| 8,110,314 | $513.9m | 0.3% | 0.14% | |||
| 7,965,017 | $504.7m | 57.66% | 0.15% | |||
| 7,425,640 | $470.5m | -24.13% | 0.1% | |||
| 7,091,568 | $449.3m | 0.15% | 0.31% | |||
| 7,062,537 | $447.5m | -28.42% | 0.03% |
Company Information
Advanced Micro Devices, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Advanced Micro Devices, Inc.
- Ticker: AMD
- Exchange: NasdaqGS
- Founded: 1969
- Industry: Semiconductors
- Sector: Semiconductors
- Implied Market Cap: US$102.283b
- Shares outstanding: 1.61b
- Website: https://www.amd.com
Number of Employees
Location
- Advanced Micro Devices, Inc.
- 2485 Augustine Drive
- Santa Clara
- California
- 95054
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AMD | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Dec 1972 |
| AMD | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1972 |
| AMD | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Dec 1972 |
| AMD * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Dec 1972 |
| AMD-U | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Dec 1972 |
| AMD | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Dec 1972 |
| 0QZD | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 1972 |
| AMD | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Dec 1972 |
| AMD | UKR (PFTS Ukraine Stock Exchange) | Yes | Common Stock | UA | UAH | Dec 1972 |
| AMD | BUL (Bulgaria Stock Exchange) | Yes | Common Stock | BG | EUR | Dec 1972 |
| AMD_KZ | KAS (Kazakhstan Stock Exchange) | Yes | Common Stock | KZ | USD | Dec 1972 |
| AMD | BASE (Buenos Aires Stock Exchange) | CEDEARS (EACH 1 REP 2 COM USD0.01) USD | AR | ARS | Apr 2019 | |
| AMDD | BASE (Buenos Aires Stock Exchange) | CEDEARS (EACH 1 REP 2 COM USD0.01) USD | AR | USD | Apr 2019 | |
| A1MD34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 | |
| AMD | NEOE (Aequitas Neo Exchange) | ADVANCED MICRO DEVICES CDR CAD HEDGED | CA | CAD | Dec 2021 | |
| AMD0 | DB (Deutsche Boerse AG) | ADVANCED MICRO DEVICES CDR CAD HEDGED | DE | EUR | Dec 2021 |
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/10/02 00:00 |
| End of Day Share Price | 2022/09/30 00:00 |
| Earnings | 2022/06/25 |
| Annual Earnings | 2021/12/25 |
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.