AMD
ADVANCED MICRO DEVICES INC
Technology • CIK: 0000002488
Loading...
Market Cap
$349.14B
P/E (TTM)
80.5x
Rev Growth (TTM)
+34.3%
Net Margin (TTM)
12.5%
FCF Yield (TTM)
1.9%
FCF Margin (TTM)
19.4%
Filing Intelligence
5.0/10
10-K/A filed Feb 4, 2026 •
Executive Summary
Operating cash flow generation was robust, substantially exceeding net income, although inventory build-up for product ramps impacted working capital.. The company has significant unconditional...
Key Concerns
- ●The company has significant unconditional purchase obligations totaling $12.2 billion, with $8.5 billion due in fiscal year 2026, primarily...
- ●Supply Chain and Geopolitical Risk due to Export Controls (high)
- ●Competition and Demand in Data Center and Client Segments (high)
Key Strengths
- ●AMD achieved strong revenue growth in 2025, primarily driven by its Data Center and Client and Gaming segments, fueled by demand for EPYC...
- ●Gross margins improved, but were partially offset by significant inventory charges related to U.S. export controls on specific GPU products.
- ●Significant investments in R&D, particularly for AI strategy, and increased SG&A for go-to-market activities reflect a focus on future...
Cash Flow Health
Free Cash Flow8/8 positive
TTM$6.7B
Q4 '26
$2.4B+25%
Q3 '25
$1.9B+10%
FCF Margin
TTM19.4%
Q4 '2623.2%+13%
Sector: 9.1%Above Avg
OCF Margin22.3%
OCF/NI1.78x
CapEx Coverage7.9x
FCF Yield1.9%
FCF Growth (2Y)+29%
Cash Conversion Cycle
144 days
DSO: 61+DIO: 142−DPO: 59
Capital Allocation & Returns
Accumulating Cash
Total Shareholder YieldTTM
TTM0.4%
Div Yield0.0%
+Buyback (TTM)0.4%
Limited capital returns
Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$6.7B
Stock Repurchases (TTM)$1.3B
Capital Return / FCF19.5%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
6.0%
Stable
+0.0% YoY+7.9%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
10.9%
8Q: 10.1%
Asset Turnover
0.47x
8Q: 0.42x
Leverage (1+D/E)
1.07x
D/E: 0.07x
DuPont: 5.4% ≈ 6.0% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
16.67x
8Q:16.17x
+343.0%
Invested Cap Turn
0.58x
8Q:0.51x
+27.4%
CapEx Intensity
1.6%
8Q:1.4%
CapEx/Depreciation
1.30x
Depreciation Rate Trend
⚠ Declining -2.8%
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2026 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $34.6B | $10.3B↑11.1% | $9.2B↑20.3% | $7.7B↑3.3% | $7.4B↓2.9% | $7.7B↑12.3% | $6.8B↑16.9% | $5.8B↑6.6% | $5.5B |
Operating Income | $3.7B | $1.8B↑38.0% | $1.3B↑1047.8% | $-134.0M↓116.6% | $806.0M↓7.5% | $871.0M↑20.3% | $724.0M↑169.1% | $269.0M↑647.2% | $36.0M |
Net Income | $4.3B | $1.5B↑21.6% | $1.2B↑42.5% | $872.0M↑23.0% | $709.0M↑47.1% | $482.0M↓37.5% | $771.0M↑190.9% | $265.0M↑115.4% | $123.0M |
Operating Cash Flow | $7.7B | $2.6B↑20.4% | $2.2B↑7.4% | $2.0B↑114.2% | $939.0M↓27.7% | $1.3B↑106.8% | $628.0M↑5.9% | $593.0M↑13.8% | $521.0M |
Free Cash Flow | $6.7B | $2.4B↑25.1% | $1.9B↑9.9% | $1.7B↑137.8% | $727.0M↓33.4% | $1.1B↑120.0% | $496.0M↑13.0% | $439.0M↑15.8% | $379.0M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
80.5x
Volatile
8Q: 304.4x-155167%
Valuation Lenses
Earnings
80.5x
vs – sector
Cash Flow
51.3x
EV/FCF vs –
Growth-Adj
0.5xPEG
Undervalued for growth
Quality-Adj
13.4P/E per %ROIC
ROIC: 6.0%
Shareholder Returns
Dividend
–
Buyback
0.4%
Total Yield
0.4%
Market Cap$349.14B
EV$345.45B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
69/100
High Quality
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Above Avg
7.3%
8Q:–
Return on Invested Capital (ROIC)Top 25%
6.0%
8Q:–
+7.9%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 10.9%
Asset Turnover: 0.47x
Earnings Quality
Cash Conversion
1.78x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin49.5%
Capital Efficiency
Invested Capital Turnover0.58x
Working Capital
Cash Conversion Cycle144 days
Growth Quality & Momentum
Quality Growth
Growth Quality Score
80/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
34.3%
OpInc Growth YoY
101.1%
EPS Growth YoY
167.7%
FCF 3Y CAGR
29.3%
Growth Quality Analysis
✓Sustainability Index: 7.5/10 - Highly sustainable growth
Margin Quality & Sustainability
Low Quality
Profitability Cascade
Gross
49.5%
Operating
10.7%
Above Avg in sector
Net
12.5%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+6.9 pts
FCF: 19.4% | Net: 12.5%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $6.47B
Interest Coverage
–
+Net cash position: $6.47B
Balance sheet risk & solvency analysis