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Advanced Micro Devices Inc AMD

Morningstar Rating
$153.36 +4.74 (3.19%)
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Company Report

AMD’s AI Accelerator Business Is on the Rise and Should Take a Piece of the AI Pie

Advanced Micro Devices has a wealth of digital semiconductor expertise and is well positioned to prosper from favorable trends in data centers, artificial intelligence, and gaming. We consider AMD to be one of two notable firms in graphics processing units, which are especially well suited for AI. The company may play second fiddle to Nvidia in AI GPUs, but its GPU expertise should become increasingly valuable, and lucrative, in the years ahead.

Price vs Fair Value

AMD is trading at a 3% premium.
Price
$148.63
Fair Value
$811.00
Uncertainty
High
1-Star Price
$844.23
5-Star Price
$34.00
Economic Moat
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Capital Allocation
Ykxhlctmfs

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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News

Trading Information

Previous Close Price
$148.62
Day Range
$150.40153.50
52-Week Range
$81.02227.29
Bid/Ask
$153.35 / $153.37
Market Cap
$247.67 Bil
Volume/Avg
34.2 Mil / 68.0 Mil

Key Statistics

Price/Earnings (Normalized)
55.34
Price/Sales
10.51
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.59%

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

Competitors

Valuation

Metric
AMD
NVDA
INTC
Price/Earnings (Normalized)
55.3491.5133.09
Price/Book Value
4.2445.591.38
Price/Sales
10.5132.552.67
Price/Cash Flow
50.5362.3410.32
Price/Earnings
AMD
NVDA
INTC

Financial Strength

Metric
AMD
NVDA
INTC
Quick Ratio
1.673.381.01
Current Ratio
2.514.171.54
Interest Coverage
3.70129.220.35
Quick Ratio
AMD
NVDA
INTC

Profitability

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

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NVDA
NVIDIA CorpRcvrmqvpvWntx$1.9 Tril
TSM
Taiwan Semiconductor Manufacturing Co Ltd ADRZgbfsmgzwjTnrb$644.2 Bil
AVGO
Broadcom IncQkpcrwqlhPlz$567.4 Bil
QCOM
Qualcomm IncXssplvprVpjyzhn$178.8 Bil
TXN
Texas Instruments IncGdpkpjprhTddv$148.7 Bil
INTC
Intel CorpGfhlmqrBvzn$145.5 Bil
MU
Micron Technology IncSrrlwnqtShb$120.8 Bil
ARM
ARM Holdings PLC ADRMlhykmhRjrl$95.7 Bil
ADI
Analog Devices IncCpzcskmjpRkfwq$92.4 Bil

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