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Advanced Micro Devices Inc AMD

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Stock XNAS Rating as of
$143.97 −14.61 (9.21%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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AMD Earnings: Maintaining $145 Valuation as AI GPU Sales Met Our Expectations

Brian Colello

Narrow-moat Advanced Micro Devices reported solid first-quarter results and provided investors, in our view, with a decent second-quarter forecast. However, we suspect some investors were hoping for a higher forecast for AMD’s budding data center graphics processing unit business for artificial intelligence. Shares fell 8% afterhours and approached our unchanged fair value estimate of $145 per share. We anticipate that AMD will take a piece of the AI GPU pie. Its revenue coming from a brand-new business is quite impressive in absolute terms, but we don’t see many signs that AMD will reach parity with Nvidia in AI GPUs soon.

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Price vs Fair Value

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AMD is trading at a 10% premium.
Price
$160.20
Fair Value
$713.00
Uncertainty
High
1-Star Price
$873.39
5-Star Price
$55.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

AMD has gained market share in the PC CPU market as Intel’s manufacturing prowess has hit several road bumps in recent years.

Bears

Despite AMD’s recent share gains, Intel remains the industry leader in PC CPUs and it might recapture the vast majority of the market if it can deliver industry-leading manufacturing capabilities once again.

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Trading Information

Previous Close Price
$158.58
Day Range
$142.15–151.33
52-Week Range
$81.02–227.29
Bid/Ask
$143.92 / $143.98
Market Cap
$232.64 Bil
Volume/Avg
55.3 Mil / 64.9 Mil

Key Statistics

Price/Earnings (Normalized)
59.77
Price/Sales
11.34
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
0.50%

Company Profile

Advanced Micro Devices designs a variety of digital semiconductors for markets such as PCs, gaming consoles, data centers, industrial, and automotive applications, among others. AMD’s traditional strength was in central processing units, CPUs, and graphics processing units, or GPUs, used in PCs and data centers. Additionally, the firm supplies the chips found in prominent game consoles such as the Sony PlayStation and Microsoft Xbox. In 2022, the firm acquired field-programmable gate array, or FPGA, leader Xilinx to diversify its business and augment its opportunities in key end markets such as the data center and automotive.
Sector
Technology
Industry
Semiconductors
Stock Style Box
Large Growth
Total Number of Employees
26,000
Website
https://www.amd.com

Competitors

Valuation

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Metric
AMD
INTC
NVDA
Price/Earnings (Normalized)
 59.7729.3099.43
Price/Book Value
 4.551.2249.54
Price/Sales
 11.342.3435.37
Price/Cash Flow
 50.447.4867.74
Price/Earnings
AMD
INTC
NVDA

Financial Strength

Metric
AMD
INTC
NVDA
Quick Ratio
 1.671.013.38
Current Ratio
 2.511.544.17
Interest Coverage
 3.700.35129.22
Quick Ratio
AMD
INTC
NVDA

Profitability

Metric
AMD
INTC
NVDA
Return on Assets (Normalized)
 6.35%2.37%63.34%
Return on Equity (Normalized)
 7.81%4.35%107.45%
Return on Invested Capital (Normalized)
 7.28%2.66%76.56%
Return on Assets
AMD
INTC
NVDA
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Semiconductors Industry Comparables

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Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NVDA
NVIDIA CorpCtrbrhwdpJmhmw$2.2 Tril
TSM
Taiwan Semiconductor Manufacturing Co Ltd ADRZglmtnzqnBsjx$630.4 Bil
AVGO
Broadcom IncThpspcxrrJfv$602.6 Bil
QCOM
Qualcomm IncSrhktxjmxWxgch$185.1 Bil
TXN
Texas Instruments IncGyrtssykbYbpwt$160.6 Bil
INTC
Intel CorpBvtrjlfwvWbnp$129.7 Bil
MU
Micron Technology IncPwzhqmxpHhfmn$125.1 Bil
ARM
ARM Holdings PLC ADRTbcbmwwPtzt$104.1 Bil
ADI
Analog Devices IncPhmdklflRzdt$99.5 Bil

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