AMD

AMD Stock Analysis – Key Insights & Trends

Now trading at a price of $162.71, Advanced Micro Devices has moved -4.9% so far today.

Advanced Micro Devices returned gains of 57.2% last year, with its stock price reaching a high of $227.3 and a low of $93.12. Over the same period, the stock outperformed the S&P 500 index by 24.0%. More recently, the company's 50-day average price was $149.92. Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. Based in Santa Clara, CA, the Large-Cap Technology company has 26,000 full time employees. Advanced Micro Devices has not offered a dividend during the last year.

Wider Gross Margins Than the Industry Average of 41.19%:

2018 2019 2020 2021 2022 2023
Revenue (M) $6,475 $6,731 $9,763 $16,434 $23,601 $22,680
Gross Margins 38% 43% 45% 48% 45% 46%
Net Margins 5% 5% 26% 19% 6% 4%
Net Income (M) $337 $341 $2,490 $3,162 $1,320 $854
Net Interest Expense (M) $18 $94 $47 $34 -$88 $106
Depreciation & Amort. (M) $170 $222 $312 $407 $4,174 $1,622
Diluted Shares (M) 108 1,188 1,226 1,229 1,571 1,625
Earnings Per Share $0.32 $0.3 $2.06 $2.57 $1571.0 $0.53
EPS Growth n/a -6.25% 586.67% 24.76% 61028.4% -99.97%
Avg. Price $17.21 $29.94 $65.62 $101.15 $105.33 $163.07
P/E Ratio 50.62 96.58 31.25 38.75 0.07 307.68
Free Cash Flow (M) -$129 $276 $777 $3,220 $3,115 $1,121
CAPEX (M) $163 $217 $294 $301 $450 $546
EV / EBITDA 27.35 34.14 44.91 29.59 23.53 129.64
Total Debt (M) $1,386 $486 $330 $2 $4,934 $3,434
Net Debt / EBITDA 0.5 -1.15 -0.75 -0.62 0.02 -0.25
Current Ratio 1.78 1.95 2.54 2.02 2.36 2.51

Advanced Micro Devices has rapidly growing revenues and increasing reinvestment in the business, generally positive cash flows, and an excellent current ratio of 2.51. The company also benefits from wider gross margins than its peer group, positive EPS growth, and healthy leverage levels.

Advanced Micro Devices's Valuation Is in Line With Its Sector Averages:

Advanced Micro Devices has a trailing twelve month P/E ratio of 178.5, compared to an average of 30.01 for the Technology sector. Based on its EPS guidance of $5.43, the company has a forward P/E ratio of 27.6. Advanced Micro Devices's PEG ratio is 8.41 on the basis of the 21.2% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Advanced Micro Devices is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.66 is higher than the sector average of 3.91. The company's shares are currently trading 703.5% below their Graham number.

Advanced Micro Devices Has an Average Rating of Buy:

The 40 analysts following Advanced Micro Devices have set target prices ranging from $140.0 to $250.0 per share, for an average of $187.07 with a buy rating. The company is trading -13.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Advanced Micro Devices has an average amount of shares sold short because 2.8% of the company's shares are sold short. Institutions own 72.4% of the company's shares, and the insider ownership rate stands at 0.49%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $23,971,095,160.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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