Advanced Micro Devices, Inc. (AMD)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wary when a wonderful growth story meets a demanding price. Advanced Micro Devices has real momentum: in fiscal Q2 2026, the quarter ended 2026-06-27, revenue was $11.5B, net income $2.3B and diluted EPS $1.38, versus $7.7B, $872.0M and $0.54 in fiscal Q2 2025. That is rapid growth, and the latest quarter's net margin was 19.91%. FY2025 revenue was $34.6B and net income $4.3B, up from $25.8B and $1.6B in FY2024. The balance sheet is conservative, with D/E of 0.06, Altman Z-Score 11.51, and trailing FCF of $8.4B. Still, FairStock's computed Lynch category is CYCLICAL — Semiconductors: earnings follow the economic cycle, so I would not mistake a boom for a permanent annuity. Returns are not exceptional: ROE 10.20% and ROCE 5.13%. At the 2026-10-26 close of $531.28, FairStock shows P/E 135.53, P/B 12.90, EV/EBITDA 29.20, FCF yield 2.7%, and a Graham Number of $60.27, with margin of safety -757.46%. That is not Graham's bargain; the price is discounting years of excellent execution. PEG 0.81 and Piotroski 6/9 offer some counterweight, and growth has been exceptional, but the raw valuation leaves little room for cyclical disappointment. I see a strong operating business, not a clear margin-of-safety investment. The operating record is impressive, but the statistical cheapness is absent.

In plain English: Advanced Micro Devices makes chips for data centers, computers, gaming and embedded systems. The business looks strong right now: sales and profits are growing quickly, it carries very little debt, and it produces cash. But the shares look expensive compared with earnings, accounting value, and a conservative estimate of what the business is worth.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-27) · fiscal Q1 2026 10-Q (period ended 2026-03-28) · fiscal Q3 2025 10-Q (period ended 2025-09-27) · fiscal Q2 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2025-12-27) · FY2024 10-K (period ended 2024-12-28) · FY2023 10-K (period ended 2023-12-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer