Quality Investor

Advanced Micro Devices, Inc.

Rank #351Hypergrowth

AMD · Nasdaq · Technology

Advanced Micro Devices, Inc. (AMD) — Rank #351 by gross profitability (GP/assets 0.20) · ROE 6.4% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0000002488 · all metrics point-in-time as of the filing date.

About

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

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It operates in three segments: Data Center, Client and Gaming, and Embedded. The company offers artificial intelligence (AI) accelerators, microprocessors, and graphics processing units (GPUs) as standalone devices or as incorporated into accelerated processing units, chipsets, and data center and professional GPUs; and embedded processors and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing units, field programmable gate arrays (FPGA), system on modules, AI network interface cards, and adaptive SoC products. It provides processors under the AMD Ryzen, AMD Ryzen AI, AMD Ryzen PRO, AMD Ryzen Threadripper, AMD Ryzen Threadripper PRO, AMD Athlon, and AMD PRO A-Series brands; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; professional graphics under the AMD Radeon Pro graphics brand; and AI and general-purpose compute infrastructure for hyperscale providers. The company offers data center graphics under the AMD Instinct accelerators and Radeon PRO V-series brands; server microprocessors under the AMD EPYC brand; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, and AMD R-Series and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo and Pensando brands. It serves original equipment and design manufacturers, public cloud service providers, system integrators, distributors, and add-in-board manufacturers.

The company was incorporated in 1969 and is headquartered in Santa Clara, California.

Industry
Semiconductors
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 26
Website
amd.com

Price History

AMD+369.6% · +36.2% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$821.95B

P/E (annual)

190.0

P/S (annual)

23.7

P/B

12.2

P/OCF (annual)

106.6

Shareholder Yield

0.1%

Employees

31,000

Industry

Semiconductors

Exchange

Nasdaq

Signal Flags

4 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.20
Return on equity
6.4%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.26
Current ratio
2.61×
Net cash
$9.01B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
4.7%

Growth

2/2 pass
Revenue growth
34.3%
Piotroski F-Score
8 / 9
Share dilution
-0.1%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

32.8%

stretched

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -0.1% — per-share value needs a total required return of 32.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 39.0%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

27.1%

r = 10% (base)

32.8%

r = 12%

37.7%

Net debt / market cap: -1.1%

Base FCF: $6.7B3Y mean FCF: $3.4B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

75.5xFair
41.6xmed 84.7x316.4x

P / S

Price / revenue per share

9.5xExpensive
3.8xmed 7.7x12.0x

P / B

Price / book value per share

5.2xFair
2.3xmed 18.5x40.3x

P / GP

Price / gross profit per share

19.1xFair
10.0xmed 18.9x26.1x

P / FCF

Price / free cash flow per share

48.6xFair
39.7xmed 104.6x4811.7x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.20

Primary signal (Novy-Marx).

15th of 17 SIC 3674 peers

Return on equity

6.4%

Gross margin

49.5%

11th of 17 SIC 3674 peers

Revenue growth (YoY)

34.3%

RPO growth (YoY)

270.6%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

13.6%

Revenue CAGR (5Y)

28.8%

Earnings CAGR (3Y)

48.6%

FCF CAGR (3Y)

29.3%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.26

6th of 16 SIC 3674 peers (best = lowest)

Current ratio

2.61×

12th of 17 SIC 3674 peers

Quick ratio

1.69×

Net cash

$9.01B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$6.74B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.55

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

4.7%

Stock-based comp intensity.

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Value
Op. Leverage