AMD stock: fundamental analysis

Stocks · AMD · Technology

Advanced Micro Devices, Inc. operates as a semiconductor company internationally. It operates in three segments: Data Center, Client and Gaming, and Embedded. Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.

Data as of September 18, 2026 · Yahoo Finance

Quick read

Business quality

ROE of 10.2%: a decent return, not an exceptional one. Out of every 100 in sales, 15.6 end up as profit.

Financial health

It holds more cash than debt (net debt/EBITDA of -0.9x): a very comfortable position.

Growth

Revenue is growing 50.1% year on year: a solid pace. Earnings are up 159.5%.

Valuation

It trades at a P/E of 142.8, above the 28.1 median of the technology companies we track. On expected earnings the P/E falls to 36.0: the market expects profits to rise. Paying more can be justified by faster growth or a higher-quality business.

Dividend

AMD does not pay a dividend right now: it reinvests profits or returns cash through buybacks.

Tools

All metrics

AMDSector median
Business quality
ROE10.2%34.0%
ROA5.1%11.9%
Gross margin55.7%52.2%
Operating margin17.3%30.4%
Net margin15.6%27.6%
Financial health
Net debt/EBITDA-0.9x0.7x
Debt/equity0.1x0.5x
Current ratio2.6x1.7x
Growth
Revenue growth50.1%35.2%
Earnings growth159.5%127.8%
Valuation
P/E ratio142.8x28.1x
Forward P/E36.0x19.9x
EV/EBITDA92.1x27.8x
Price/book13.6x10.9x
FCF yield1.0%1.4%
Dividend
Dividend yield0.6%
Payout ratio0.0%20.9%
Beta (volatility)2.5x1.3x

Frequently asked questions

What is AMD's P/E ratio?

AMD's P/E is 142.8 based on trailing 12-month earnings and 36.0 on expected earnings. The median for its sector among the companies we track is 28.1. Data as of September 18, 2026.

What dividend does AMD pay?

AMD does not pay a dividend right now: it reinvests profits or returns cash through buybacks.

Is AMD stock expensive?

It trades at a P/E of 142.8, above the 28.1 median of the technology companies we track. On expected earnings the P/E falls to 36.0: the market expects profits to rise. Paying more can be justified by faster growth or a higher-quality business. This is an educational reading based on ratios, not a buy or sell recommendation.

Does AMD have a lot of debt?

It holds more cash than debt (net debt/EBITDA of -0.9x): a very comfortable position.

What is AMD's market cap?

AMD has a market cap of 913.9B USD and its shares trade at 559.82 USD, with a 52-week range of 154.78 USD to 584.73 USD (data as of September 18, 2026).

Other companies in the sector

Trailing 12-month metrics. Educational content, not investment advice.