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Advanced Micro Devices Inc AMD

Morningstar Rating
$202.64 +10.11 (5.25%)
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Company Report

AMD Earnings: Raising Valuation to $145 From $125 as AI GPU Revenue Is on the Rise

Narrow-moat Advanced Micro Devices reported solid fourth-quarter results, but we consider the firm’s first-quarter forecast to be a mixed bag. We raise our fair value estimate for AMD to $145 from $125, thanks to more optimistic long-term data center revenue assumptions, but after a 78% increase in share price in the past three months (versus 16% for the Morningstar Global Markets Index), we still view shares as overvalued.

Price vs Fair Value

AMD is trading at a 40% premium.
Price
$202.64
Fair Value
$287.00
Uncertainty
High
1-Star Price
$359.85
5-Star Price
$32.00
Economic Moat
Grnzm
Capital Allocation
Mmxdwkyd

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.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
$192.53
Day Range
$195.42202.72
52-Week Range
$76.65202.72
Bid/Ask
$203.01 / $203.17
Market Cap
$327.42 Bil
Volume/Avg
103.8 Mil / 69.6 Mil

Key Statistics

Price/Earnings (Normalized)
76.47
Price/Sales
14.52
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.43%

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)
76.4794.6942.13
Price/Book Value
5.8647.171.75
Price/Sales
14.5233.683.40
Price/Cash Flow
69.8264.5113.15
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
Economic Moat
Market Cap
NVDA
NVIDIA CorpVnm$2.1 Tril
AVGO
Broadcom IncJlcr$648.4 Bil
TSM
Taiwan Semiconductor Manufacturing Co Ltd ADRTplyy$564.6 Bil
INTC
Intel CorpMxrc$185.3 Bil
QCOM
Qualcomm IncZfnrbtl$182.0 Bil
TXN
Texas Instruments IncGdn$155.5 Bil
ARM
ARM Holdings PLC ADRRhtr$145.6 Bil
MU
Micron Technology IncXyn$105.0 Bil
ADI
Analog Devices IncVzpr$97.3 Bil

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