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Advanced Micro Devices Inc (AMD) Stock

Advanced Micro Devices Inc Stock Details, Movements and Public Alerts

Advanced Micro Devices (AMD): The $200 Billion Chip Giant Challenging Intel and NVIDIA's Dominance

When Lisa Su became CEO of Advanced Micro Devices in 2014, the company was hemorrhaging cash and losing ground to Intel in every market segment. A decade later, AMD has captured over 30% of the server CPU market with its EPYC processors, disrupted NVIDIA's AI dominance with MI300X accelerators, and delivered over 3,000% stock returns. The Ryzen and Radeon brands now compete head-to-head with Intel and NVIDIA across gaming, professional graphics, and data center applications. With the $49 billion Xilinx acquisition integrated and Instinct AI chips ramping production, AMD is positioned at the intersection of cloud computing, artificial intelligence, and high-performance computing—three of technology's fastest-growing segments.

52-Week Range

$267.08 - $76.48

-3.99% from high · +235.28% from low

Avg Daily Volume

81,990,761

20-day average

100-day avg: 59,991,377

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

129.59

Above market average

Forward P/E

28.57

Earnings expected to grow

PEG Ratio

0.53

Potentially undervalued

Price to Book

4.62

EV/EBITDA

48.83

EPS (TTM)

$1.67

Price to Sales

11.87

Beta

1.89

More volatile than market

How is AMD valued relative to its earnings and growth?
Advanced Micro Devices Inc trades at a P/E ratio of 129.59, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 28.57 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.53 suggests the stock may be undervalued relative to its growth rate.
What is AMD's risk profile compared to the market?
With a beta of 1.89, Advanced Micro Devices Inc is significantly more volatile than the market. For every 10% market move, this stock tends to move 19% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 4.62 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

9.57%

Operating Margin

-1.28%

EBITDA

$5.51B

Return on Equity

4.70%

Return on Assets

2.19%

Revenue Growth (YoY)

31.70%

Earnings Growth (YoY)

233.60%

How profitable and efficient is AMD's business model?
Advanced Micro Devices Inc achieves a profit margin of 9.57%, meaning it retains $9.57 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of -1.28% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 4.70% and ROA at 2.19%, the company achieves moderate returns on invested capital.
What are AMD's recent growth trends?
Advanced Micro Devices Inc's revenue grew by 31.70% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 233.60% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SEMICONDUCTORS industry averages for proper context.

Company Size & Market

Market Cap

$351.2B

Revenue (TTM)

$29.60B

Revenue/Share (TTM)

$18.25

Shares Outstanding

1.62B

Book Value/Share

$36.78

Asset Type

Common Stock

What is AMD's market capitalization and position?
Advanced Micro Devices Inc has a market capitalization of $351.2B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 1.62B shares outstanding, the company's ownership is widely distributed. As a major player in the SEMICONDUCTORS industry, it competes with other firms in this sector.
How does AMD's price compare to its book value?
Advanced Micro Devices Inc's book value per share is $36.78, while the current stock price is $256.42, resulting in a price-to-book (P/B) ratio of 6.97. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$230.11

10.26% downside potential

Analyst Recommendations

Strong Buy

5

Buy

31

Hold

16

Sell

0

Strong Sell

0

How reliable are analyst predictions for AMD?
52 analysts cover AMD with 69% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $230.11 implies -10.3% downside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on AMD?
Current analyst recommendations:5 Strong Buy, 31 Buy, 16 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 15, 2025, 02:22 AM

Technical Indicators

RSI (14-day)

75.37

Overbought

50-Day Moving Average

$187.63

36.66% above MA-50

200-Day Moving Average

$138.04

85.76% above MA-200

MACD Line

21.27

MACD Signal

19.13

MACD Histogram

2.14

Bullish

What does AMD's RSI value tell investors?
The RSI (Relative Strength Index) for AMD is currently 75.37, indicating the stock is in overbought territory (above 70). This suggests strong recent buying pressure that may be unsustainable. While overbought conditions can persist in strong trends, traders often watch for RSI divergences or a drop below 70 as potential sell signals. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret AMD's MACD and moving average crossovers?
MACD analysis shows the MACD line at 21.27 above the signal line at 19.13, with histogram at 2.14. This bullish crossover suggests upward momentum is building. The wide histogram confirms strong momentum. The 50-day MA ($187.63) is above the 200-day MA ($138.04), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Oct 30, 2025, 12:46 AM

Active Alerts

Alert Condition
Price falls below
Threshold
$220.00
Created
Oct 29, 2025, 04:15 PM
Alert Condition
MA Breakout (Bearish)
Threshold
200 days
Created
Oct 29, 2025, 03:46 PM
Alert Condition
Forward P/E falls below
Threshold
25 x
Created
Oct 29, 2025, 03:46 PM
Alert Condition
RSI Threshold Cross
Threshold
76
Created
Oct 28, 2025, 04:20 PM
Alert Condition
RSI Threshold Cross
Threshold
78
Created
Oct 28, 2025, 05:55 AM
Alert Condition
Price falls below
Threshold
$245.00
Created
Oct 28, 2025, 05:55 AM
Alert Condition
Price decreases by
Threshold
5%
Created
Oct 23, 2025, 06:57 AM

Advanced Micro Devices (AMD) Stock Analysis 2025: Complete Investment Guide

In December 2024, Microsoft and Meta announced multibillion-dollar purchases of AMD's MI300X AI accelerators—a watershed moment that validated Lisa Su's strategy to challenge NVIDIA's 95% dominance in AI training chips. These design wins, combined with Amazon's deployment of AMD EPYC processors across AWS infrastructure, demonstrate how AMD has evolved from a struggling CPU maker to a diversified semiconductor leader competing across the industry's most lucrative markets.

Business Model & Competitive Advantages

AMD generates revenue across four segments: Data Center ($7B+ quarterly), Client (Ryzen CPUs for PCs), Gaming (console chips for PlayStation/Xbox plus Radeon GPUs), and Embedded (Xilinx FPGAs and adaptive computing). The company operates a fabless model, designing chips while outsourcing manufacturing to TSMC—a capital-light approach that has enabled rapid innovation cycles and access to cutting-edge process nodes.

AMD's competitive moat stems from three pillars: architectural excellence (Zen CPU and RDNA GPU designs deliver superior performance-per-watt), ecosystem integration (partnerships with Microsoft Azure, Google Cloud, and major OEMs), and execution consistency under Lisa Su's leadership. The $49 billion Xilinx acquisition added field-programmable gate arrays (FPGAs) and adaptive SoCs, expanding AMD's addressable market beyond traditional CPUs and GPUs into telecommunications, automotive, and industrial applications.

Financial Performance

AMD delivered $25.8 billion in revenue for fiscal 2024, representing 10% growth year-over-year as data center strength offset weakness in PC and gaming markets. Gross margins expanded to 50%, up from the low-40% range in prior years, reflecting the favorable mix shift toward high-margin server and AI products.

  • •Revenue Growth: Data center segment grew 69% YoY in Q4 2024, now representing 50%+ of total revenue
  • •Operating Leverage: Operating margin reached 17% in Q4, improving from 8% two years ago as R&D efficiencies scale
  • •Cash Generation: Free cash flow exceeded $1.5B quarterly with $6B cash on balance sheet, funding R&D without dilution
  • •Forward Guidance: Management projects mid-teens revenue growth in 2025 driven by AI accelerator ramp and continued server share gains

Growth Catalysts

  • •AI Accelerator Ramp: MI300 family production scaling with multibillion-dollar pipeline from hyperscalers seeking NVIDIA alternatives
  • •Server Market Share: EPYC processors targeting 35-40% server CPU share by 2026 as Intel stumbles on manufacturing delays
  • •Next-Gen Architecture: Zen 5 CPU cores and RDNA 4 GPU architecture launching in 2025 promise 20%+ performance gains
  • •Edge AI Expansion: Ryzen AI processors with integrated NPUs capturing Windows Copilot+ PC refresh cycle
  • •Custom Silicon: Growing semi-custom business with Microsoft (Xbox), Sony (PlayStation), and new automotive design wins

Risks & Challenges

  • •NVIDIA's AI Moat: Incumbent enjoys CUDA software ecosystem advantage with 4M+ developers; AMD's ROCm platform lags in maturity and adoption
  • •Intel Turnaround Risk: New CEO Pat Gelsinger's manufacturing investments could restore Intel competitiveness by 2026-2027
  • •Cyclicality: PC and gaming markets remain weak; consumer-facing segments face inventory corrections and macroeconomic headwinds
  • •TSMC Dependency: Reliance on single foundry partner creates geopolitical risk and capacity constraints during chip shortages
  • •Valuation Premium: 28.6x forward P/E leaves little room for execution missteps; any AI guidance miss would trigger significant multiple compression

Competitive Landscape

AMD competes in a three-way semiconductor battle. In CPUs, Intel retains 65% server share but faces manufacturing setbacks, creating AMD's opportunity. In GPUs, NVIDIA dominates with 80%+ discrete graphics share and 95%+ AI accelerator share, though AMD is gaining ground in price-sensitive gaming and cost-conscious AI deployments. Emerging threats include Arm-based server chips from Amazon (Graviton), Google (Axion), and Microsoft (Cobalt) that could commoditize x86 architecture over time.

MetricAMDIntelNVIDIA
2024 Revenue$25.8B$54.2B$79.8B
Gross Margin50%40%75%
Server CPU Share31%65%N/A
Discrete GPU Share17%N/A80%
Forward P/E28.6x15.2x32.4x

Who Is This Stock Suitable For?

Perfect For

  • ✓Growth investors seeking semiconductor exposure with 3-5 year horizon
  • ✓Tech-focused portfolios betting on AI and cloud computing trends
  • ✓Investors comfortable with execution risk and moderate volatility

Less Suitable For

  • ✗Value investors seeking low valuation multiples (28.6x forward P/E is premium)
  • ✗Income investors (AMD pays no dividend and prioritizes reinvestment)
  • ✗Conservative investors seeking stable, predictable earnings (cyclical semiconductor exposure)

Investment Thesis

AMD represents a calculated bet on Lisa Su's execution ability and the secular shift to AI-accelerated computing. The company has proven it can take share from entrenched incumbents—EPYC's rise from 1% to 31% server share in five years demonstrates this capability. With hyperscalers desperate to diversify away from NVIDIA's monopolistic pricing and Intel's manufacturing woes creating CPU share gain opportunities, AMD sits at the intersection of two powerful tailwinds.

However, the 28.6x forward P/E multiple prices in significant growth—any MI300 production delays, ROCm software shortcomings, or Intel manufacturing recovery would pressure valuation. The stock is best suited for growth investors who believe AMD can capture 10-15% of the $200B+ AI accelerator market by 2027 while defending its server CPU position. Conservative investors should wait for a better entry point, as the current valuation offers limited margin of safety.

Conclusion

AMD is a HOLD at current levels for existing shareholders, with consideration to BUY on any pullback below $110. The company's long-term trajectory remains positive, but near-term valuation limits upside until AI revenue proves sustainable and margins expand further. Patient investors should wait for a better entry point, while current holders can maintain positions given the multi-year growth runway.
Bull Case
$185 (45% upside)
Base Case
$145 (13% upside)
Bear Case
$95 (26% downside)

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