Now trading at a price of $102.99, Advanced Micro Devices has moved 4.6% so far today.
Advanced Micro Devices returned gains of 76.0% last year, with its stock price reaching a high of $132.83 and a low of $58.03. Over the same period, the stock outperformed the S&P 500 index by 63.0%. More recently, the company's 50-day average price was $103.17. Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. Based in Santa Clara, CA, the large-cap Technology company has 25,000 full time employees. Advanced Micro Devices has not offered a dividend during the last year.
Growing Revenues With Increasing Reinvestment in the Business:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $6,475 | $6,731 | $9,763 | $16,434 | $23,601 | $21,876 |
| Gross Margins | 38% | 43% | 45% | 48% | 45% | 44% |
| Operating Margins | 7.0% | 9.0% | 14.0% | 22.0% | 5.0% | 5.0% |
| Net Margins | 5.0% | 5.0% | 26.0% | 19.0% | 6.0% | 0.0% |
| Net Income (MM) | $337 | $341 | $2,490 | $3,162 | $1,320 | -$25 |
| Net Interest Expense (MM) | $121 | $94 | $47 | $55 | $88 | $143 |
| Depreciation & Amort. (MM) | $170 | $222 | $312 | $407 | $4,174 | $4,216 |
| Earnings Per Share | $0.32 | $0.3 | $2.06 | $2.57 | $0.84 | -$0.06 |
| Diluted Shares (MM) | 1,064 | 1,120 | 1,207 | 1,229 | 1,571 | 1,767 |
| Free Cash Flow (MM) | -$129 | $276 | $777 | $3,220 | $3,115 | $1,867 |
| Capital Expenditures (MM) | $163 | $217 | $294 | $301 | $450 | $530 |
| Net Current Assets (MM) | $1,349 | $2,059 | $3,540 | $4,007 | $6,894 | $7,146 |
| Long Term Debt (MM) | $1,114 | $486 | $330 | $1 | $2,467 | $1,714 |
| Net Debt / EBITDA | 0.27 | -1.15 | -0.75 | -0.55 | -0.44 | -0.25 |
Advanced Micro Devices has growing revenues and increasing reinvestment in the business, low leverage, and generally positive cash flows. However, Advanced Micro Devices has slimmer gross margins than its peers, weak operating margins with a stable trend, and declining EPS growth.
Advanced Micro Devices does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $3.93, the company has a forward P/E ratio of 26.3. In comparison, the average P/E ratio for the Technology sector is 27.16. On the other hand, the market is undervaluing Advanced Micro Devices in terms of its equity because its P/B ratio is 3.03. In comparison, the sector average is 6.23. In conclusion, Advanced Micro Devices's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
Advanced Micro Devices Has an Average Rating of Buy:
The 39 analysts following Advanced Micro Devices have set target prices ranging from $56.59 to $188.62 per share, for an average of $129.11 with a buy rating. As of April 2023, the company is trading -20.1% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Advanced Micro Devices has an average amount of shares sold short because 2.0% of the company's shares are sold short. Institutions own 74.5% of the company's shares, and the insider ownership rate stands at 0.48%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $14,306,824,527.
