US · Nasdaq · AMD
AMD (AMD) stock analysis: valuation and financials
Technology · Semiconductors
$594.24 -2.3% Price as of Oct 12, 2026
Elite AI franchise — $41.3B TTM revenue, 53.2% gross margin, $9.885B net cash — but 150.8x P/E against a base-case value 70% below the current price.
- Market cap
- $970.1B
- P/E
- 150.8x
- EV/Sales
- 23.2x
- FCF yield
- 0.9%
- 52-week range
- $190.95 – $649.42
- Next earnings
- Nov 3, 2026
Research as of Oct 13, 2026
Business quality scorecard
- Growth85
- Profitability42
- Cash flow85
- Balance sheet100
- Capital allocation51
- Innovation100
- Valuation9
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Hyperscalers, OEMs, ODMs, distributors, PC/console makers and embedded OEMs pay AMD for x86 CPUs, AI GPUs, semi-custom SoCs, FPGAs and related software; Data Center is the profit engine, contributing 46.8% of segment operating profit on $16.6B FY2025 revenue at a 21.7% operating margin.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | $16.4B | $23.6B | $22.7B | $25.8B | $34.6B |
| Revenue growth | +68.3% | +43.6% | -3.9% | +13.7% | +34.3% |
| Gross margin | 48.2% | 44.9% | 46.1% | 49.4% | 49.5% |
| Operating margin | 22.2% | 5.4% | 1.8% | 7.4% | 10.7% |
| Net income | $3.2B | $1.3B | $854.0M | $1.6B | $4.3B |
| Free cash flow | $3.2B | $3.1B | $1.1B | $2.4B | $6.7B |
| FCF margin | 19.6% | 13.2% | 4.9% | 9.3% | 19.4% |
Amounts in USD · What is free cash flow?
Margins FY2025 gross margin 49.5% vs 49.4% FY2024; TTM gross margin 53.2% and operating margin 15.7% (+3.3pp). Q2 FY2026 gross margin 53.8% vs 39.8% a year earlier, driven by absence of MI308 export-control charges and a Data Center-heavy mix.
- Cash flow HealthyTTM operating cash flow $10.08B exceeds net income $6.43B, a 1.82x cash conversion; TTM free cash flow $8.40B, a 20.3% margin.
- Debt LowNet cash of $9.89B: total debt $3.23B TTM against $5.09B cash plus $8.03B short-term investments; net debt/EBITDA -2.35x.
Balance sheet Leverage · Net cash
- Cash & short-term investments
- $13.1B
- Total debt
- $3.2B
- Net cash
- $9.9B
- Interest coverage
- 44.1x
- Current ratio
- 2.6x
As of Jun 27, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management StrongExecution: FY2025 revenue $34.6B, up 34.3%, with 5-year revenue CAGR 28.8%; net income $4.3B and free cash flow $6.7B, a 19.4% FCF margin.
- Credibility HighFive straight revenue guides met or beaten, four above the high end: Q3 FY2025 $9.246B vs $8.4-9.0B; Q4 FY2025 $10.270B vs $9.3-9.9B; Q1 FY2026 $10.253B vs $9.5-10.1B; Q2 FY2026 $11.536B vs $10.9-11.5B.
Of 5 guided figures checked: 3 beat, 2 in range, 0 missed.
Valuation range
Implied value per share · Price when researched: $594.24
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.