Advanced Micro Devices AMD

Semiconductors, Technology

$516.79

+1.74%

Market cap: $843.6B
PE: 133×; 9y median 106×
Forward PE: 45.7×; 10y median 37.8×
Price to sales: 20.4×
EV/EBIT: 129×
Revenue, 12 months: $41.3B; +40% on a year ago
Net margin: 15.6%
Free cash flow yield: 1.0%

A Superworth story

A fifth off the top, still priced for the AI ramp

A week of AI funding fears took the shine off, but the price still assumes its next AI chips land on time in 2027

7 charts, with numbers as of Oct 17, 2026

A fifth off its high in ten days, after more than doubling in a year
AMD peaked on October 6 and has since given back about a fifth. AP tied the week's chip selloff to worries about how long the AI buildout lasts, and whether companies borrowing to fund it can keep spending as bond yields climb. Even after the fall, the stock is still more than double where it was a year ago.
Even after the drop, close to its richest on sales in ten years
At about 21 times its last twelve months of sales, AMD costs more than two and a half times its ten year median. The ten year high came this month, just before the fall, and only about one day in forty of the last decade was richer. It trades like a company whose sales are about to jump.
Sales growth has sped up every quarter for two years
Twelve month revenue rose from 22.7 billion dollars at the end of 2023 to 41.3 billion, and growth on a year earlier has quickened every quarter since. Data center chips drive it. That business more than doubled in the June quarter and is now well over half of sales.
Margins are at a ten year high, and they have fallen fast before
Gross margin is 53.2%, the highest in ten years. AMD has been here before. On flat sales in 2022-23, twelve month net margin went from about 14.5% to about zero. Most of that was accounting for the Xilinx purchase. Adjusted profit a share fell about a third, a real downturn but not a loss.
The hope is being the second source to Nvidia, and part of the bill is in AMD stock
Three AI buyers want an alternative to Nvidia's chips. OpenAI, Meta and Anthropic plan gigawatts of AMD's next AI chip, the MI450, from 2027, as ceilings rather than orders. On that promise market value more than doubled in a year, to about 860 billion dollars. Part of the bill: OpenAI and Meta hold warrants for about a fifth more shares, and AMD puts up to 5 billion dollars into Anthropic.
On next year's expected earnings, it still costs more than its habit
At today's price, consensus earnings for the next twelve months put AMD at about 47 times, against a five year median near 37. Consensus is adjusted. Reported profit runs about a third lower, mostly from amortizing past deals and stock pay. The line before late September is rebuilt with hindsight.
November 3 tests whether the buyers keep spending
AMD reports September's quarter that day. The test is the guide for December, where consensus has 16.2 billion dollars of sales, and the next four quarters nearly double the last twelve months. After a week of doubt about AI spending, a guide that backs that with MI450 on time supports the price. One well short undercuts the ramp it assumes.

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Charts

Financials

Income statement for AMD, by quarter
Income statement	Q3 FY23	Q4 FY23	Q1 FY24	Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26
	$5.8B+4%	$6.2B+10%	$5.5B+2%	$5.8B+9%	$6.8B+18%	$7.7B+24%	$7.4B+36%	$7.7B+32%	$9.2B+36%	$10.3B+34%	$10.3B+38%	$11.5B+50%
Cost of revenue	$3.1B−5%	$3.3B+2%	$2.9B−3%	$3B+2%	$3.4B+11%	$3.8B+16%	$3.7B+27%	$4.6B+56%	$4.5B+31%	$4.7B+24%	$4.8B+31%	$5.3B+15%
Gross profit	$2.7B+17%	$2.9B+21%	$2.6B+9%	$2.9B+17%	$3.4B+25%	$3.9B+33%	$3.7B+46%	$3.1B+7%	$4.8B+40%	$5.6B+44%	$5.4B+45%	$6.2B+103%
R&D	$1.5B+18%	$1.5B+11%	$1.5B+8%	$1.6B+10%	$1.6B+9%	$1.7B+13%	$1.7B+13%	$1.9B+20%	$2.1B+31%	$2.3B+36%	$2.4B+39%	$2.5B+34%
SG&A	$576M+3%	$644M+9%	$607M+4%	$640M+17%	$707M+23%	$781M+21%	$886M+46%	$991M+55%	$1.1B+51%	$1.2B+53%	$1.3B+41%	$1.4B+41%
	$224M	$342M	$36M	$269M	$724M+223%	$871M+155%	$806M+2139%	−$134M	$1.3B+75%	$1.8B+101%	$1.5B+83%	$2B
Interest expense	$26M−16%	$27M+42%	$25M+0%	$25M−11%	$23M−12%	$19M−30%	$20M−20%	$38M+52%	$37M+61%	$36M+90%	$37M+85%	$37M−3%
Pre-tax income	$257M	$364M	$64M	$299M	$737M+187%	$889M+144%	$825M+1189%	−$74M	$1.3B+78%	$2.1B+133%	$1.6B+94%	$2.6B
	−$39M−71%	−$297M+93%	−$52M	$41M	−$27M−31%	$419M	$123M	−$834M	$153M	$455M+9%	$238M+94%	$252M
Net income	$299M+353%	$667M+3076%	$123M	$265M+882%	$771M+158%	$482M−28%	$709M+476%	$872M+229%	$1.2B+61%	$1.5B+214%	$1.4B+95%	$2.3B+163%
	$0.18+350%	$0.41+4000%	$0.07	$0.16+700%	$0.47+161%	$0.29−29%	$0.44+529%	$0.54+238%	$0.75+60%	$0.92+217%	$0.84+91%	$1.38+156%
	1.6B+0%	1.6B+1%	1.6B+2%	1.6B+1%	1.6B+0%	1.6B+0%	1.6B−1%	1.6B−0%	1.6B+0%	1.6B+1%	1.6B+2%	1.7B+2%

Net income: 6 periods, Q4 FY10 to Q4 FY25: printed in the fourth-quarter results release.

EPS, diluted: Q4 FY09 and Q4 FY11: quarter's net income to common over its shares, to the cent. 6 periods, Q4 FY10 to Q4 FY25: printed in the fourth-quarter results release.

Diluted shares: Q4 FY09: the earlier year to date counted no dilution: the quarter's basic count plus the later year to date's dilution. 6 periods, Q4 FY10 to Q4 FY25: printed in the fourth-quarter results release.

From each company's 10-Q and 10-K filings, the newest version of each figure. Quarters are as filed (a fourth quarter is the year less its first nine months), fiscal years as the 10-K prints them, restated where a later 10-K restated them, and balance sheet lines as of the period's end. A quarter whose 10-Q isn't filed yet is from the company's results release. Growth is on the same period a year earlier. A dash is a period with no figure for the line: the filing doesn't print it, or it hasn't been read yet.

Estimates

Next earnings report: Nov 3, 2026.

Quarter	Revenue	Range	EPS	Range	Analysts
Q3 FY26	$13.1B	$12.9B to $13.5B	$1.94	$1.72 to $2.10	27
Q4 FY26	$16.2B	$14.9B to $17.5B	$2.67	$2.02 to $3.20	26
Q1 FY27	$18.3B	$16B to $19.9B	$3.08	$2.57 to $3.42	23
Q2 FY27	$20.8B	$18.1B to $22.6B	$3.62	$3.02 to $4.02	12
Q3 FY27	$24B	$20.9B to $26B	$4.34	$3.61 to $4.81	12
Q4 FY27	$27B	$23.6B to $29.3B	$5.07	$4.22 to $5.63	13
Q1 FY28	$27.3B	$23.8B to $29.6B	$5.22	$4.35 to $5.79	14
Q2 FY28	$29.1B	$25.4B to $31.6B	$5.58	$4.65 to $6.20	13

Peers

Companies in Semiconductors nearest Advanced Micro Devices' size, closest first.

Company	Market cap	PE	Its 10y median PE	Fwd PE	P/S	Revenue growth	Net margin
AMDAdvanced Micro Devices	$843.6B	133×	106×	45.7×	20.4×	+40%	15.6%
MUMicron Technology	$992.9B	11.8×	18.1×	5.0×	7.5×	+256%	63.8%
AVGOBroadcom	$1.5T	41.1×	46.3×	18.6×	17.2×	+49%	42.9%
INTCIntel	$438.6B	n/m	13.3×	50.0×	7.7×	+7%	−19.8%
AMATApplied Materials	$299.4B	32.5×	19.7×	21.3×	9.7×	+8%	30.1%
LRCXLam Research	$287.9B	34.3×	21.2×	22.6×	11.0×	+33%	32.3%
TXNTexas Instruments	$260B	36.9×	24.1×	27.0×	12.5×	+20%	34.3%
MRVLMarvell Technology	$200.4B	75.4×	30.1×	40.3×	21.2×	+31%	27.9%
KLACKLA	$190.2B	39.7×	24.0×	26.2×	14.0×	+12%	35.6%
ADIAnalog Devices	$189.5B	46.4×	39.5×	24.1×	13.7×	+34%	29.8%
QCOMQUALCOMM	$184.7B	20.4×	20.2×	19.0×	4.2×	+2%	21.0%
Peer median	$274B	36.9×	22.6×	23.3×	11.8×	+25%	31.2%