NasdaqGS:AMD

Stock Analysis Report

Executive Summary

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide.

Rewards

Earnings are forecast to grow 47.88% per year

Earnings grew by 1.4% over the past year

Risk Analysis

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

NVIDIA

NasdaqGS:NVDA

Share Price & News

How has Advanced Micro Devices's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.2%

AMD

4.8%

US Semiconductor

1.5%

US Market


1 Year Return

133.6%

AMD

41.1%

US Semiconductor

20.1%

US Market

Return vs Industry: AMD exceeded the US Semiconductor industry which returned 41.1% over the past year.

Return vs Market: AMD exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

AMDIndustryMarket
7 Day11.2%4.8%1.5%
30 Day8.6%4.3%1.4%
90 Day38.7%13.6%8.7%
1 Year133.6%133.6%43.8%41.1%22.7%20.1%
3 Year321.2%321.2%95.7%85.1%50.1%40.5%
5 Year1707.5%1707.5%158.6%133.8%73.1%54.1%

Price Volatility Vs. Market

How volatile is Advanced Micro Devices's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Advanced Micro Devices undervalued compared to its fair value and its price relative to the market?

176.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMD ($55.31) is trading above our estimate of fair value ($36.41)

Significantly Below Fair Value: AMD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AMD is poor value based on its PE Ratio (177x) compared to the Semiconductor industry average (36.4x).

PE vs Market: AMD is poor value based on its PE Ratio (177x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: AMD is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: AMD is overvalued based on its PB Ratio (22.9x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is Advanced Micro Devices forecast to perform in the next 1 to 3 years based on estimates from 34 analysts?

47.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMD's forecast earnings growth (47.9% per year) is above the savings rate (1.7%).

Earnings vs Market: AMD's earnings (47.9% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AMD's revenue (18.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: AMD's revenue (18.5% 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 high in 3 years time (31%)


Next Steps

Past Performance

How has Advanced Micro Devices performed over the past 5 years?

60.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMD has a large one-off loss of $176.0M impacting its December 28 2019 financial results.

Growing Profit Margin: AMD's current net profit margins (5.1%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: AMD has become profitable over the past 5 years, growing earnings by 60.5% per year.

Accelerating Growth: AMD's earnings growth over the past year (1.4%) is below its 5-year average (60.5% per year).

Earnings vs Industry: AMD earnings growth over the past year (1.4%) exceeded the Semiconductor industry -27.7%.


Return on Equity

High ROE: AMD's Return on Equity (12.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Advanced Micro Devices's financial position?


Financial Position Analysis

Short Term Liabilities: AMD's short term assets ($4.6B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: AMD's short term assets ($4.6B) exceed its long term liabilities ($842.0M).


Debt to Equity History and Analysis

Debt Level: AMD's debt to equity ratio (17.2%) is considered satisfactory.

Reducing Debt: AMD's debt to equity ratio has reduced from 1201.1% to 17.2% over the past 5 years.


Balance Sheet

Inventory Level: AMD has a high level of physical assets or inventory.

Debt Coverage by Assets: AMD's debt is covered by short term assets (assets are 9.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AMD is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: AMD is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Advanced Micro Devices's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AMD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AMD's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Lisa Su (49yo)

5.5yrs

Tenure

US$13,356,392

Compensation

Dr. Lisa T. Su, Ph.D., has been Director at Cisco Systems, Inc. since January 27, 2020. Dr. Su has been the Chief Executive Officer and President of Advanced Micro Devices, Inc. since August 10, 2014 and O ...


CEO Compensation Analysis

Compensation vs Market: Lisa's total compensation ($USD13.36M) is about average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Lisa's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lisa Su
President5.5yrsUS$13.36m0.22% $144.0m
Devinder Kumar
Senior VP7.1yrsUS$3.65m0.041% $26.3m
Mark Papermaster
CTO and Executive VP of Technology & Engineering8.3yrsUS$4.81m0.11% $73.9m
Harry Wolin
Senior VP17.1yrsUS$2.82m0.13% $81.7m
Forrest Norrod
Senior VP and GM of Datacenter & Embedded Solutions Business Group5.3yrsUS$3.50m0.071% $45.7m
Keivan Keshvari
Senior Vice President of Global Operations2.1yrsno datano data
Darla Smith
Corporate VP & Chief Accounting Officer3.8yrsno data0.0013% $828.1k
Ruth Cotter
Senior Vice President of Worldwide Marketing3.9yrsno datano data
Paul Grasby
Senior VP4.3yrsno data0.0023% $1.5m
Robert Gama
Senior VP & Chief Human Resources Officer1.6yrsno datano data

4.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: AMD's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lisa Su
President5.5yrsUS$13.36m0.22% $144.0m
Nora Denzel
Independent Director5.9yrsUS$318.38k0.013% $8.5m
John Marren
Independent Director3yrsUS$303.38kno data
John Caldwell
Independent Chairman of the Board3.8yrsUS$450.07k0.0064% $4.1m
W. Sanders
Chairman Emeritus16yrsUS$2.13mno data
Joseph Householder
Independent Director5.4yrsUS$328.38kno data
Michael Gregoire
Director0.2yrsno datano data
Abhijit Talwalkar
Independent Director2.7yrsUS$303.38k0.0013% $847.5k
Mark Durcan
Independent Director2.3yrsUS$316.68kno data

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: AMD's board of directors are considered experienced (3.8 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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.1%.


Top Shareholders

Company Information

Advanced Micro Devices, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Advanced Micro Devices, Inc.
  • Ticker: AMD
  • Exchange: NasdaqGS
  • Founded: 1969
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$64.694b
  • Shares outstanding: 1.17b
  • Website: https://www.amd.com

Number of Employees


Location

  • Advanced Micro Devices, Inc.
  • 2485 Augustine Drive
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972
AMDDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972
AMDXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 1972
AMD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1972
AMD-UETLX (Eurotlx)YesCommon StockITEURDec 1972
AMDSWX (SIX Swiss Exchange)YesCommon StockCHCHFDec 1972
0QZDLSE (London Stock Exchange)YesCommon StockGBUSDDec 1972
AMDWBAG (Wiener Boerse AG)YesCommon StockATEURDec 1972
AMDBASE (Buenos Aires Stock Exchange)CEDEARS (EACH 1 REP 2 COM USD0.01)ARARSApr 2019
A1MD34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

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 (APU), chipsets, discrete and integrated graphics processing units (GPUs), and professional GPUs; and server and embedded processors, and semi-custom System-on-Chip (SoC) products and technology for game consoles. The company provides x86 microprocessors for desktop PCs under the AMD Ryzen, AMD Ryzen PRO, Threadripper, AMD A-Series, AMD FX, AMD Athlon, AMD Athlon PRO, and AMD Pro A-Series processors brands; microprocessors for notebook and 2-in-1s under the AMD Ryzen processors with Radeon Vega GPUs, AMD A-Series, AMD Athlon, AMD Ryzen PRO, and AMD Pro A-Series processors brands; microprocessors for servers under the AMD EPYC and AMD Opteron brands; and chipsets under the AMD trademark. It also offers discrete GPUs for desktop and notebook PCs under the AMD Radeon graphics and AMD Embedded Radeon brands; professional graphics products under the AMD Radeon Pro and AMD FirePro graphics brands; and Radeon Instinct accelerators for servers. In addition, the company provides embedded processor solutions for interactive digital signage, casino gaming, and medical imaging under the AMD Opteron, AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series processors brands; and customer-specific solutions based on AMD’s CPU, GPU, and multi-media technologies, as well as semi-custom SoC products. It serves original equipment and design manufacturers, datacenters, original design manufacturers, system integrators, distributors, and add-in-board manufacturers through its direct sales force, independent distributors, and sales representatives. Advanced Micro Devices, Inc. was founded in 1969 and is headquartered in Santa Clara, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:30
End of Day Share Price2020/02/14 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


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.