AMD

Technology

Advanced Micro Devices

Price Chart

Market Data

Financials

XBRL · SEC EDGAR

2008–2025(18yr)

Revenue

Net Income

Free CF

Metric	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$5.8B	$5.4B	$6.5B	$6.6B	$5.4B	$5.3B	$5.5B	$4.0B	$4.3B	$5.3B	$6.5B	$6.7B	$9.8B	$16.4B	$23.6B	$22.7B	$25.8B	$34.6B	+34.3%
Gross Profit	$2.3B	$2.3B	$3.0B	$2.9B	$1.2B	$2.0B	$1.8B	$1.1B	$998.0M	$1.8B	$2.4B	$2.9B	$4.3B	$7.9B	$10.6B	$10.5B	$12.7B	$17.2B	+34.8%
Gross Margin	39.9%	42.1%	45.6%	44.8%	22.8%	37.3%	33.4%	27.1%	23.1%	34.7%	37.8%	42.6%	44.5%	48.2%	44.9%	46.1%	49.4%	49.5%	+0.2pp
Operating Income	-$2.0B	$664.0M	$848.0M	$368.0M	-$1.1B	$103.0M	-$155.0M	-$481.0M	-$372.0M	$204.0M	$451.0M	$631.0M	$1.4B	$3.6B	$1.3B	$401.0M	$1.9B	$3.7B	+94.4%
Operating Margin	-33.7%	12.3%	13.1%	5.6%	-19.5%	1.9%	-2.8%	-12.1%	-8.6%	3.9%	7.0%	9.4%	14.0%	22.2%	5.4%	1.8%	7.4%	10.7%	+3.3pp
Net Income	-$3.1B	$293.0M	$471.0M	$491.0M	-$1.2B	-$83.0M	-$403.0M	-$660.0M	-$497.0M	$43.0M	$337.0M	$341.0M	$2.5B	$3.2B	$1.3B	$854.0M	$1.6B	$4.3B	+164.2%
Net Margin	-53.3%	5.4%	7.3%	7.5%	-21.8%	-1.6%	-7.3%	-16.5%	-11.5%	0.8%	5.2%	5.1%	25.5%	19.2%	5.6%	3.8%	6.4%	12.5%	+6.2pp
Free Cash Flow	-$1.3B	$7.0M	-$560.0M	$132.0M	-$471.0M	-$232.0M	-$193.0M	-$322.0M	$13.0M	-$45.0M	-$129.0M	$276.0M	$777.0M	$3.2B	$3.1B	$1.1B	$2.4B	$6.7B	+180.0%
FCF Margin	-22.7%	0.1%	-8.6%	2.0%	-8.7%	-4.4%	-3.5%	-8.1%	0.3%	-0.9%	-2.0%	4.1%	8.0%	19.6%	13.2%	4.9%	9.3%	19.4%	+10.1pp
EPS (Diluted)	$-5.15	$0.45	$0.64	$0.66	$-1.60	$-0.11	$-0.53	$-0.84	$-0.60	$0.04	$0.32	$0.30	$2.06	$2.57	$0.84	$0.53	$1.00	$2.65	+165.0%

Total Debt$2.3B

Cash & Equiv.$5.5B

Net Cash$3.2B

3 min read

1. THE BIG PICTURE

Advanced Micro Devices has transitioned from a PC-centric chipmaker to a diversified AI powerhouse, but it remains a distant second in profitability compared to its primary rivals. While it is hitting record revenue and scaling its "Instinct" GPU and EPYC CPU lines, its structural reliance on a single third-party foundry and a handful of massive customers creates a precarious foundation for its rapid growth.

2. WHERE THE RISKS HIT HARDEST

The "full-stack AI" ambition is directly threatened by manufacturing concentration. Advanced Micro Devices identifies its "custom-ready chiplet platform" as a core strength (10-K Item 1), yet this innovation is entirely dependent on TSMC for 7nm and smaller nodes (Risks). Any capacity failure at TSMC would immediately invalidate the ability to deliver MI350 and EPYC 5th Gen processors. Furthermore, the push for "end-to-end AI leadership" is hampered by export controls; U.S. restrictions on AI semiconductors to China have already necessitated $800 million in inventory charges, directly undermining the profitability gained from record sales (Risks).

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a company growing rapidly but struggling with efficiency. While revenue jumped 34.3% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter, Advanced Micro Devices’ operating margin of 8.5% is the lowest among its peer group, trailing Nvidia’s 59.0% and Broadcom’s 36.9% (XBRL). This suggests that while Advanced Micro Devices is winning deals, it is doing so at a much higher cost or lower price point than its competitors. The Q1 2026 guidance of $9.8 billion—a 32% year-over-year increase—shows that the growth engine remains hot, even as it faces a seasonal 5% sequential decline (8-K). With short interest at a low 1.9% of the float, market sentiment appears broadly supportive of this growth trajectory despite the thin margins.

4. IS IT WORTH IT AT THIS PRICE?

At 18.7x forward earnings, Advanced Micro Devices trades in line with the peer median of 19.7x, suggesting it is at fair value relative to the sector (XBRL). At this multiple, the market is pricing in approximately 10.3% long-term growth (CAPM analysis). Given that revenue grew 34.3% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter and the Data Center segment is expanding at 39%, Advanced Micro Devices is currently significantly outperforming the market's implied growth rate.

However, the sensitivity is sharp: if growth were to slow to 8.5%, the justified multiple would drop to 14.0x, representing a 25% downside (CAPM analysis). The justification for the current price rests on the ability to close the margin gap; its 11.5% net margin is a fraction of Nvidia’s 52.7%, leaving little room for error if competition from Intel or Nvidia forces aggressive pricing.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if gross margins fail to trend toward the 60%+ levels seen at Nvidia and Broadcom, indicating Advanced Micro Devices lacks the pricing power to match its technical "full-stack" claims.
Constructive if the "Helios" AI rack-scale platform or Ryzen AI NPU integration leads to a significant reduction in customer concentration, which currently sees a "small number of customers" accounting for a substantial portion of revenue (10-K Item 1).

6. BOTTOM LINE

Structural Advantage: Integration of dedicated neural processing units (NPUs) into x86 CPUs and a "custom-ready" chiplet architecture that allows for rapid AI hardware tailoring.

Bottom Line: Advanced Micro Devices is a high-growth challenger effectively scaling its AI business, but its bottom-line efficiency remains too low to justify a premium valuation over its more profitable peers.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Competitive Intensity: Advanced Micro Devices faces aggressive pricing and marketing from Intel and Nvidia, which leverage their larger market positions and proprietary software ecosystems to limit Advanced Micro Devices’ market share and decrease margins.
Manufacturing Concentration: Advanced Micro Devices relies on a small number of third-party foundries, specifically TSMC for 7nm and smaller nodes, and GLOBALFOUNDRIES for larger nodes; any failure by these partners to meet capacity or yield requirements directly impacts the ability to fulfill customer demand.
Export Controls: U.S. government regulations, including those targeting AI-related semiconductors, restrict sales to China and other D5 countries, creating uncertainty in revenue and requiring costly compliance and licensing efforts.
Customer Concentration: A small number of customers account for a substantial portion of revenue; the loss or reduced demand from any of these key accounts would materially adversely affect financial results.
Supply Chain and Inventory Volatility: Advanced Micro Devices’s reliance on individual purchase orders and the lack of long-term commitments from many suppliers increase the risk of excess or obsolete inventory, particularly given the short product lifecycles in the semiconductor industry.

2. Company-Specific Risks

Semi-Custom SoC Dependency: Revenue from semi-custom System-on-Chip products is tied to the market success of third-party products, such as game consoles from Sony and Microsoft, over which Advanced Micro Devices has no control.
Joint Venture Exposure: Advanced Micro Devices’s reliance on ATMP joint ventures with affiliates of Tongfu Microelectronics Co., Ltd. for the majority of its assembly, test, mark, and pack services creates a specific operational bottleneck.
Environmental Remediation: Advanced Micro Devices is a named responsible party at three Superfund sites in Sunnyvale, California, and remains liable for remediation costs if other parties fail to fulfill their settlement obligations.
AI Infrastructure Delays: Advanced Micro Devices’s growth strategy in the Data Center segment is vulnerable to construction delays in customer data center buildouts and potential customer inability to secure sufficient energy or capital for AI infrastructure.

3. Regulatory/Legal Risks

Export Licensing: Advanced Micro Devices is subject to EAR and ITAR regulations; failure to obtain licenses for products like the AMD Instinct™ MI308 or compliance failures can result in penalties, loss of export privileges, and inventory write-downs.
Tax Liabilities: Advanced Micro Devices faces potential tax liabilities from global tax audits and the implementation of OECD "Pillar One" and "Pillar Two" global minimum tax frameworks, which could impact the effective tax rate.
Intellectual Property Litigation: Advanced Micro Devices is subject to ongoing and potential future litigation regarding patent infringement, which could result in material royalty payments, damages, or injunctions prohibiting the sale of specific products.
AI Regulation: The EU AI Act and other emerging global regulatory frameworks for AI may impede Advanced Micro Devices’s ability to offer certain products or increase compliance costs and potential liability.

4. Financial Impact Map

Competitive Pricing/Bundling → Gross Margin → Aggressive pricing actions by competitors like Intel and Nvidia can decrease margins and profitability. Export Restrictions → Inventory → Restrictions on MI308 products led to approximately $800 million in inventory and related charges in the second quarter of 2025. Wafer Supply Agreements → Gross Margin → Failure to meet annual wafer purchase targets with GLOBALFOUNDRIES can lead to excess inventory or higher unit costs, adversely impacting gross margin. Deferred Tax Assets → Results of Operations → If Advanced Micro Devices determines that deferred tax assets are not realizable, it could result in a material expense in the period of determination. Product Defects → Operating Expenses → Costs related to defective products, including recall, replacement, and litigation, could divert engineering resources and adversely affect financial results.