Quality Investor

Advanced Micro Devices, Inc.

Rank #332HypergrowthWatchlistCompare with other stocks

AMD · Nasdaq · Technology

Advanced Micro Devices, Inc. (AMD) — Rank #332 by gross profitability (GP/assets 0.20) · ROE 6.4% · Piotroski F-Score 8 / 9.

As-of 2026-10-30 · 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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

31,000

Industry

Semiconductors

Exchange

Nasdaq

12/12

Flags passed

AMD passes 12/12 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · RPO outpacing revenue · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

No warning flags · GP/assets 20th percentile of 21 SIC 3674 peers

Gross profitability (GP / assets)

0.20

Primary signal (Novy-Marx).

20th pctl of 21 SIC 3674 peers

Return on equity

6.4%

Gross margin

49.5%

35th pctl of 21 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%

Cash Flow Health

Is the cash real?

No warning flags · FCF 55% above net income

Free cash flow

$6.74B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

55.4%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

4.7%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $9.01B, F-Score 8/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.26

74th pctl of 20 SIC 3674 peers (best = lowest)

Current ratio

2.61×

40th pctl of 21 SIC 3674 peers

Quick ratio

1.69×

Net cash

$9.01B

Cash & equivalents minus total debt.

Piotroski F-Score

8 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

3.3 / 5

Good
Share count trend(net buybacks)
-0.1%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
4.0%4/5 Strong

Lifecycle Phase History

20202025
Hypergrowth
Value
Op. Leverage

Price History

AMD+434.2% · +39.7% CAGRSPY+82.9% · +12.8% CAGR