| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 8 | 129.7x | 18.0x | Bottom tier | |
Growth | 95 | 39.5% | 7.1% | Top tier | |
Quality | 72 | 8.0% | 4.5% | Top tier | |
Safety | 93 | — | 2.6x | Top tier | |
Capital Return | 23 | — | 2.11% | Bottom tier | |
Momentum | 95 | 219.8% | 3.0% | Top tier | |
Sentiment | 77 | 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. develops EPYC server processors, Instinct AI accelerators, Ryzen PC processors, Radeon gaming products, embedded processing solutions, as well as the ROCm software platform and integrated server systems such as Helios. Revenue is generated through three reported segments: Data Center, Client and Gaming, and Embedded; Data Center has become the largest driver, benefiting from EPYC sales to cloud providers and enterprises and the deployment of Instinct accelerators by AI labs and cloud service providers.
In Q2 FY2026, revenue reached $11.5 billion, gross profit was $6.2 billion, net income was $2.3 billion, and earnings per share were $1.38 according to EDGAR filings. Management stated that revenue grew 50% year over year and 13% sequentially, and that non-GAAP gross margin was 56% and operating margin was 27%, versus operating expenses of $3.4 billion. The company also generated $2.4 billion in cash flow from continuing operations and $1.6 billion in free cash flow, and ended the period with $13.1 billion in cash and short-term investments.
Data Center revenue reached $6.7 billion in Q2 FY2026, up 107% year over year, and represented about 58% of total revenue, with segment operating income of $2.1 billion and a 31% margin. Client and Gaming revenue reached $3.8 billion; of which Client contributed $3.1 billion, up 23%, and Gaming contributed $779 million, down 31%. Embedded recorded $977 million in revenue, up 19%, with operating income of $386 million and a 40% margin.
Analyst consensus rates AMD stock a “Buy,” with an average target of $594.04, versus a high target of $1,250 and a low target of $260; this wide gap reveals significant variation in estimates of how quickly the deployment of Helios and MI450-Series will translate into revenue and profit. The average target is slightly above the 52-week range peak of $584.73, while the annual range extends from $149.22 to $584.73, reflecting a strong re-rating alongside Data Center growth, but the wide range of analyst targets keeps valuation risk elevated if execution is delayed or margins come under pressure.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Data Center was the largest driver, with revenue of $6.7 billion, up 107% year over year, representing approximately 58% of AMD’s total revenue. EPYC sales grew by more than 70%, while Instinct accelerator sales more than doubled. The segment generated operating income of $2.1 billion and an operating margin of 31%.
Helios is an integrated server platform combining EPYC Venice, MI450-Series units, Pensando networking, and ROCm software, and it has entered production with initial shipments scheduled for Q3 FY2026. AMD says the platform delivers up to 15% higher throughput at the same rack power and up to 30% more tokens per dollar compared with the competition. MI455X contains 432 gigabytes of HBM4 memory, 50% more than the previous version, and the company announced its specifications on August 26, 2026.
AMD expects revenue of approximately $13 billion, plus or minus $300 million, implying year-over-year growth of 41% at the midpoint of the range. It expects sequential growth of approximately 13%, led by strong double-digit increases in Data Center and Embedded. It also guided to a non-GAAP gross margin of approximately 56% and operating expenses of approximately $3.65 billion.
Automated analysis for informational purposes only — not investment advice.
AMD announced that Anthropic will deploy up to 2 gigawatts of MI450-Series within Helios, with the first gigawatt beginning in the first half of 2027. It also cited multi-generation, gigawatt-scale deployments with OpenAI and Meta, and Microsoft’s use of the Helios platform on Azure for advanced model inference. On July 28, 2026, Core Scientific announced a partnership linked to 2.5 gigawatts of capacity and expected contracted revenue exceeding $14 billion.
Client revenue grew 23% year over year to $3.1 billion in Q2 FY2026, with Ryzen Pro sales increasing by more than 50%. Embedded revenue also increased 19% to $977 million, with an operating margin of 40%. In contrast, Gaming revenue declined 31% to $779 million due to lower semi-custom sales during the gaming console cycle and higher component costs.
The expected increase in Data Center depends on executing the Helios and MI450-Series launch and on customer data centers being ready in terms of power, buildings, and capacity. The server processor supply chain was tight during the first half of 2026, although management expects conditions to improve in 2027 and support server revenue growth of more than 70%. Management also said that the margin of the Data Center AI business is slightly below the company average, while the cost of HBM and components could affect the profitability of the expansion.
