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Advanced Micro Devices, Inc. — Intrinsic Value & Fair Price

AMD
NASDAQTechnologySemiconductorsCIK 0000002488amd.comAbout AMD
Last close · Oct 16, 2026528.75−33.48 (−5.95%)
Market cap$863.2B
Model value · DCF · Perpetuity growth · 5y
146.88
Advanced Micro Devices closed at $528.75 — overvalued by 260% vs model.
106.58the model's range226.94

DCF · Perpetuity growth · 5y leads for a high-growth company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
6.31 – 771.47
Wall St. target
650.00 19% below
Above model, 1y
97 of 97 days

Price and model value

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Valuation models

price $528.75 · as of Oct 17, 2026

DCF · Perpetuity growth · 5y leads for a high-growth company — positive operating income and three years of positive free cash flow. How we value a stock walks through every input. The price is 260% above the model value: the models see only the filed business, and a company priced on businesses with no revenue line yet is better taken apart, as Tesla is.

engine pkg:0.1.0

Research on AMD

1 post
Anthropic's IPO prospectus: the numbers behind the $42B loss
Anthropic's confidential S-1 as Reuters reported it on Sep 28-29, 2026: the income statement, $518B of compute commitments by partner, and the Founder LLC vote.
Allen Yan · · 8 min · 中文
Studied AMD from its filings? Guest posts are reviewed before they go live.Write about AMD →

How it is valued

Valued asHigh growth
High revenue growth (~24% recent)Moderate margins (13% net margin)Highly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for high-growth companies
Price / sales
24.8×
Revenue growth
34.3%
Gross margin
49.5%
Operating margin
10.7%
FCF margin
19.4%
EV / EBITDA
119×
Full financials

Analyst actions

third-party, quoted
10-06Mizuho Securities · target705.00
10-05Stifel Nicolaus · target700.00
09-25Truist Financial · target720.00
08-25Raymond James · “Strong Buy” from “Outperform”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
1 more company lists AMD as a comparable

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just AMD. No account.

About Advanced Micro Devices

Advanced Micro Devices, Inc. (AMD), established in 1969 and headquartered in Santa Clara, California, operates as a global leader in the semiconductor industry. The company organizes its extensive operations into two primary segments: Computing and Graphics, and Enterprise, Embedded and Semi-Custom. In its Computing and Graphics division, AMD develops a range of products including x86 microprocessors (often as accelerated processing units), chipsets, and various graphics processing units (GPUs), encompassing discrete, integrated, data center, and professional variants, alongside providing development services. The Enterprise, Embedded and Semi-Custom segment focuses on server and embedded processors, bespoke System-on-Chip (SoC) products, and foundational technology for popular game consoles, also offering associated development support. AMD's diverse product lineup features processors for desktop and notebook personal computers under well-known brands such as AMD Ryzen, Ryzen PRO, Ryzen Threadripper, Threadripper PRO, AMD Athlon, Athlon PRO, AMD FX, AMD A-Series, and PRO A-Series. Discrete GPUs for these PCs are offered through the AMD Radeon graphics and AMD Embedded Radeon graphics brands, while professional graphics solutions include AMD Radeon Pro and AMD FirePro. Furthermore, the company provides high-performance accelerators for servers, including Radeon Instinct, Radeon PRO V-series, and AMD Instinct, along with AMD EPYC microprocessors designed for server environments. Its embedded processor solutions span multiple brands, such as AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series. AMD also produces chipsets under its own trademark and crafts customer-specific solutions leveraging its CPU, GPU, and multimedia expertise, including specialized semi-custom SoC products. AMD reaches its wide array of clients, which comprise original equipment manufacturers (OEMs), public cloud service providers, original design manufacturers (ODMs), system integrators, independent distributors, online retailers, and add-in-board manufacturers. The company's sales and distribution network includes its direct sales force, independent distributors, and dedicated sales representatives.

CEO
Lisa T. Su
Headquarters
Santa Clara, CA
Employees
31,000
IPO
1972-09-07
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.