The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 9 | 177.8x | 20.8x | Bottom tier | |
Growth | 94 | 35.0% | 6.1% | Top tier | |
Quality | 69 | 7.4% | 6.6% | Top tier | |
Safety | 95 | — | 0.7x | Top tier | |
Capital Return | 30 | — | 2.02% | Bottom tier | |
Momentum | 99 | 266.2% | 4.1% | Top tier | |
Sentiment | 81 | 30 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Advanced Micro Devices, Inc. (AMD) is a global leader in the semiconductor sector, specializing in the design and development of microprocessors, graphics processing units (GPUs), and adaptive computing solutions. The company generates its revenue primarily through the sale of EPYC processors for data centers, Ryzen processors for desktops and laptops, Instinct accelerators for artificial intelligence, as well as Radeon processors for gaming and embedded and semi-custom solutions. The company serves the cloud computing, enterprise, consumer devices, and hyperscale data center sectors.
In the first quarter of 2026, AMD achieved highly robust financial results representing a structural turning point, with total revenue reaching $10.3 billion, registering a growth of 38% year-over-year. GAAP net income was approximately $1.4 billion (with earnings per share of $0.84), while the non-GAAP gross margin reached 55%, an increase of 170 basis points compared to the previous year, driven by an improved product mix and an increased contribution from the data center segment. The company also generated record free cash flow of $2.6 billion, representing more than three times the cash flow of the previous year.
In terms of segment performance, the Data Center segment led the growth, achieving record revenue of $5.8 billion, a 57% increase year-over-year, representing the main driver of the company's revenue and profits. The Client and Gaming segment recorded revenue of $3.6 billion (a 23% growth year-over-year), with the Client segment alone accounting for $2.9 billion driven by sales of Ryzen processors, while Gaming segment revenue was approximately $720 million. Meanwhile, the Embedded segment achieved a 6% year-over-year growth to reach $873 million.
The current analyst consensus indicates a 'Buy' recommendation for AMD stock, with an average price target of $449.65, where the range of analyst estimates spans from a minimum of $260 to a maximum of $665. Considering the stock's 52-week price range of $117.78 to $558.289, the stock is moving in a direction that reflects strong optimism regarding the AI boom, particularly with the analysts' average price target trading within this wide range, demonstrating future growth potential compared to historical valuations and price-to-earnings multiples driven by data center growth.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
AMD expects second-quarter 2026 revenue to reach approximately $11.2 billion, plus or minus $300 million, representing a 46% year-over-year growth and a 9% sequential growth. Management expects this growth to be driven primarily by robust growth in the Data Center segment and growth in the Client and Gaming segments, alongside double-digit growth in the Embedded segment. The company also expects to achieve a non-GAAP gross margin of approximately 56%, with operating expenses of approximately $3.3 billion during the same quarter.
The boom in Agentic AI and inference has led to a massive increase in demand for server processors (CPUs) to manage and route data and parallel tasks alongside graphics accelerators. Based on these dynamics, AMD has doubled its total addressable market (TAM) estimates for server processors to reach $120 billion by 2030, compared to its previous estimate of $60 billion. The company expects its server processor revenue to grow by more than 70% year-over-year in the second quarter of 2026, with strong momentum continuing in the second half driven by Turin and Venice processors.
AMD has expanded its strategic partnership with Meta to deploy up to 6 GW of computing infrastructure powered by AMD Instinct accelerators across several product generations. This agreement includes the co-design of a custom graphics accelerator based on the MI450 architecture to support Meta's next-generation AI workloads. Shipments of these units are scheduled to begin in the second half of 2026 using the Helios architecture, which integrates Instinct accelerators with EPYC Venice processors to deliver fully integrated data center solutions.
Automated analysis for informational purposes only — not investment advice.
AMD's insider activity records showed a strong sell signal (strong_sell) over the past three months ending in June 2026, with net sales value reaching approximately $174.0 million. There were 71 sales recorded by company insiders and executives without a single purchase during this period, with the last recorded transaction date being June 10, 2026. Investors often monitor these movements to assess management's confidence in current stock price levels and its near-term growth outlook.
AMD's management acknowledges inflationary pressures and rising memory and component costs, expecting these increases to impact PC shipments and the Gaming segment in the second half of 2026. As a result, the company expects Gaming segment revenue to decline by more than 20% in the second half compared to the first half of this year. To counter this, AMD is focusing on optimizing its product mix toward premium and commercial categories, such as Ryzen Pro processors, which saw sales grow by more than 50%, while securing sufficient memory supply through deep partnerships with suppliers to meet the needs of the high-margin Data Center segment.