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1. Company Snapshot

1.a. Company Description

Advanced Micro Devices, Inc.operates as a semiconductor company worldwide.The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom.


Its products include x86 microprocessors as an accelerated processing unit, chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services; and server and embedded processors, and semi-custom System-on-Chip (SoC) products, development services, and technology for game consoles.The company provides processors for desktop and notebook personal computers under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, AMD FX, AMD A-Series, and AMD PRO A-Series processors brands; discrete GPUs for desktop and notebook PCs under the AMD Radeon graphics, AMD Embedded Radeon graphics brands; and professional graphics products under the AMD Radeon Pro and AMD FirePro graphics brands.It also offers Radeon Instinct, Radeon PRO V-series, and AMD Instinct accelerators for servers; chipsets under the AMD trademark; microprocessors for servers under the AMD EPYC; embedded processor solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series processors brands; and customer-specific solutions based on AMD CPU, GPU, and multi-media technologies, as well as semi-custom SoC products.


It serves original equipment manufacturers, public cloud service providers, original design manufacturers, system integrators, independent distributors, online retailers, and add-in-board manufacturers through its direct sales force, independent distributors, and sales representatives.The company was incorporated in 1969 and is headquartered in Santa Clara, California.

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1.b. Last Insights on AMD

Advanced Micro Devices, Inc.'s recent performance was driven by record Q3 results, with 36% year-over-year revenue growth, and raised guidance. The company's expanding presence in GPU and CPU markets, significant improvements in software, notably ROCm7, and a fully integrated AI stack strategy are key growth drivers. Recent deals, including with OpenAI and the U.S. Department of Energy, have fueled record revenue expectations. Management forecasts huge increases to profit margins, and the company targets $100 billion in annual data center revenue within five years.

1.c. Company Highlights

2. AMD's Q3 Earnings: A Strong Performance Across Key Segments

AMD reported a record revenue of $9.2 billion for Q3, representing a 36% year-over-year growth, driven by broad-based demand across its data center AI, server, and PC businesses. The company's net income rose 31% year-over-year, and free cash flow more than tripled. Earnings per share (EPS) came in at $1.2, beating analyst estimates of $1.17. Gross margin was 54%, up 40 basis points year-over-year, primarily driven by product mix. As Jean Hu noted, "We delivered a record revenue of $9.2 billion, up 36% year-over-year, exceeding the high end of our guidance."

Publication Date: Nov -06

📋 Highlights
  • Record Quarterly Revenue:: AMD achieved $9.2 billion in revenue, a 36% year-over-year increase, with net income up 31% and free cash flow tripling to $1.5 billion.
  • Data Center Segment Growth:: Revenue reached $4.3 billion (up 22% YoY), driven by 5th Gen EPYC Turin CPUs and MI350 GPUs, with server CPU sales hitting an all-time high.
  • Client & Gaming Surge:: Revenue jumped 73% YoY to $4 billion, led by desktop CPU records and 181% gaming revenue growth from Radeon GPUs and semi-custom projects.
  • Strong Free Cash Flow:: Generated $1.5 billion in free cash flow, with $1.3 billion returned to shareholders via share repurchases in Q1-Q3 2025.
  • Future Outlook:: Q4 2025 revenue guidance set at $9.6 billion (+25% YoY), with data center AI, client, and gaming segments expected to drive double-digit growth.

Segment Performance

The data center segment was a key growth driver, with revenue increasing 22% year-over-year to a record $4.3 billion, led by the ramp of Instinct MI350 Series GPUs and server share gains. Server CPU revenue reached an all-time high, driven by the adoption of 5th Gen EPYC Turin processors. The client and gaming segment also saw significant growth, with revenue increasing 73% year-over-year to $4 billion, driven by strong demand for Ryzen-powered notebooks and Radeon GPUs.

Guidance and Outlook

AMD expects revenue to grow to approximately $9.6 billion in Q4 2025, representing a 25% year-over-year increase, driven by strong double-digit growth in the data center, client and gaming, and embedded segments. The company expects gross margin to be around 54.5% and operating expenses to be approximately $2.8 billion. Analysts estimate next year's revenue growth at 29.7%, indicating a strong outlook for the company's continued growth trajectory.

Valuation Metrics

AMD's current valuation metrics indicate a premium relative to its earnings and cash flow generation. The stock trades at a P/E ratio of 126.07 and an EV/EBITDA ratio of 67.57, suggesting that the market has priced in significant growth expectations. The P/S ratio is 12.99, and the ROE is 5.61%. The company's free cash flow yield is 1.09%, indicating a relatively low return for investors. As AMD continues to execute on its growth strategy, investors will be watching to see if the company can deliver on its promises and justify its current valuation.

3. NewsRoom

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Overlooked Sectors Find Promise While NVDA, AMD & MSFT Show Tech Muscles

Dec -04

Source: youtube.com

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Market Today: WBD Sale Bids, Meta Cuts, Apple Shake-Up

Dec -04

Source: gurufocus.com

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AI Bubble Or Supercycle? AMD CEO Says Quiet Part Out Loud

Dec -04

Source: seekingalpha.com

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I Think These Are the 3 Best AI Stocks to Buy in December

Dec -04

Source: fool.com

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What Is Happening With AMD Stock?

Dec -04

Source: forbes.com

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AMD chief says company ready to pay 15% tax on AI chip shipments to China

Dec -04

Source: reuters.com

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Sam Altman Tried to Build a Rocket Empire--And No One Noticed

Dec -04

Source: gurufocus.com

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Better Artificial Intelligence (AI) Stock for 2026: Nvidia vs. AMD

Dec -04

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (16.25%)

6. Segments

Data Center

Expected Growth: 12.2%

Advanced Micro Devices' data storage and computing demand, driven by cloud computing, artificial intelligence, and gaming, will fuel growth, as the company's products, such as EPYC and Ryzen, gain market share.

Client

Expected Growth: 30.5%

Advanced Micro Devices' client segment is driven by increasing demand for high-performance computing, artificial intelligence, and gaming consoles, as well as the adoption of cloud computing and the Internet of Things.

Embedded

Expected Growth: 4.8%

Advanced Micro Devices’ embedded products are expected to grow, driven by increasing demand for edge computing, autonomous vehicles, and IoT devices, as well as the company’s strategic partnerships and investments in these areas.

Gaming

Expected Growth: 12.8%

Growing demand for gaming PCs and consoles, driven by esports, cloud gaming, and increasing adoption of 4K and 8K resolutions, will fuel Advanced Micro Devices’ gaming segment growth.

7. Detailed Products

Ryzen Processors

High-performance central processing units (CPUs) for desktop and laptop computers, offering high clock speeds, multiple cores, and threads for efficient multitasking and gaming.

EPYC Processors

Server-grade CPUs designed for datacenter and cloud computing, offering high core counts, high memory bandwidth, and advanced security features.

Radeon Graphics Cards

High-performance graphics processing units (GPUs) for gaming, professional visualization, and machine learning, offering advanced graphics rendering, compute, and AI capabilities.

Radeon Instinct Accelerators

High-performance GPU accelerators for machine learning, deep learning, and high-performance computing, offering advanced compute and memory capabilities.

AMD Ryzen Threadripper Processors

High-performance desktop processors for content creators, offering high core counts, high clock speeds, and advanced features for efficient multitasking and content creation.

AMD Ryzen Embedded Processors

Low-power, high-performance processors for embedded systems, offering advanced security, reliability, and power management features.

8. Advanced Micro Devices, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Advanced Micro Devices, Inc. is medium due to the presence of alternative products and services in the market, such as Intel and NVIDIA.

Bargaining Power Of Customers

The bargaining power of customers for Advanced Micro Devices, Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Advanced Micro Devices, Inc. is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants for Advanced Micro Devices, Inc. is low due to the high barriers to entry in the semiconductor industry, including significant capital requirements and technological expertise.

Intensity Of Rivalry

The intensity of rivalry for Advanced Micro Devices, Inc. is high due to the competitive nature of the semiconductor industry, with multiple players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.10%
Debt Cost 3.95%
Equity Weight 94.90%
Equity Cost 12.25%
WACC 11.83%
Leverage 5.37%

11. Quality Control: Advanced Micro Devices, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NVIDIA

A-Score: 5.3/10

Value: 0.0

Growth: 10.0

Quality: 9.2

Yield: 0.0

Momentum: 8.0

Volatility: 4.7

1-Year Total Return ->

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Analog Devices

A-Score: 4.8/10

Value: 1.1

Growth: 4.6

Quality: 7.3

Yield: 4.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

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GLOBALFOUNDRIES

A-Score: 3.7/10

Value: 5.4

Growth: 5.0

Quality: 4.2

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
AMD

A-Score: 3.6/10

Value: 0.2

Growth: 6.8

Quality: 6.6

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Intel

A-Score: 3.5/10

Value: 4.1

Growth: 1.2

Quality: 3.2

Yield: 1.0

Momentum: 9.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
ON Semiconductor

A-Score: 3.3/10

Value: 2.8

Growth: 6.9

Quality: 5.7

Yield: 0.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

215.98$

Current Price

215.98$

Potential

-0.00%

Expected Cash-Flows