NASDAQ · Technology

Advanced Micro Devices, Inc.

AMD · Semiconductors

$537.37

▲ 24.89 (4.86%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 52.8%

Operating Margin 14.4%

Net Income Margin 13.5%

Fin. Health

A⤢

Years to Pay Off Debt 2.8 yrs

Working Capital vs Long-Term Debt $15.8B

Working Capital $18.1B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 13.59x

Cash Flow

B⤢

Free Cash Flow $2.6B

CapEx % of Net Income 28.1%

Owner Earnings $2.5B

Profitability

Gross Profit Margin 52.8%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 14.4%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 13.5%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 2.8 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt $15.8B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $18.1B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $2.6B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 28.1%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $2.5B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Advanced Micro Devices, Inc.

Advanced Micro Devices, Inc. operates as a semiconductor company internationally. It operates in three segments: Data Center, Client and Gaming, and Embedded. The company offers artificial intelligence (AI) accelerators, microprocessors, and graphics processing units (GPUs) as standalone devices or as incorporated into accelerated processing units, chipsets, and data center and professional GPUs; and embedded processors and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing units, field programmable gate arrays (FPGA), system on modules, AI network interface cards, and adaptive SoC products. It provides processors under the AMD Ryzen, AMD Ryzen AI, AMD Ryzen PRO, AMD Ryzen Threadripper, AMD Ryzen Threadripper PRO, AMD Athlon, and AMD PRO A-Series brands; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; professional graphics under the AMD Radeon Pro graphics brand; and AI and general-purpose compute infrastructure for hyperscale providers. The company offers data center graphics under the AMD Instinct accelerators and Radeon PRO V-series brands; server microprocessors under the AMD EPYC brand; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, and AMD R-Series and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo and Pensando brands. It serves original equipment and design manufacturers, public cloud service providers, system integrators, distributors, and add-in-board manufacturers. The company was incorporated in 1969 and is headquartered in Santa Clara, California.

Market Data

Market Cap $876.2B

Enterprise Value $818.7B

P/E (TTM) 179.72

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit 52.8%

Operating Margin 14.4%

Net Margin 13.5%

Company Info

Sector Technology

Industry Semiconductors

Employees 31000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Advanced Micro Devices, Inc. at $537.37.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $537.37, the stock trades at a 1866% premium to its Graham Number of $27.33. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Trading at 65.2x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	52.8%▼	54.3%•	N/A
Operating Margin %	14.4%▼	17.1%•	N/A
Net Income %	13.5%▼	14.7%•	N/A
Diluted EPS	0.84▼	0.92•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$79.6B	$76.9B	N/A
Total Debt	$3.9B▲	$3.8B•	N/A
Working Capital	$18.1B▲	$17.5B•	N/A
Years to Pay Debt	2.80	2.55	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$2.6B▲	$2.4B•	N/A
Owner Earnings	$2.5B	$2.5B	N/A
CapEx % of Net Income	28.1%	14.7%	N/A

Income Statement

	2026	2025	2024
Tax Rate For Calcs	0	0
Normalized EBITDA	2,398,000	2,861,000
Net Income From Continuing Operation Net Minority Interest	1,372,000	1,620,000
Reconciled Depreciation	757,000	751,000
Reconciled Cost Of Revenue	4,370,000	4,239,000
EBITDA	2,398,000	2,861,000
EBIT	1,641,000	2,110,000
Net Interest Income	-37,000	179,000
Interest Expense	37,000	36,000
Normalized Income	1,372,000	1,620,000
Net Income From Continuing And Discontinued Operation	1,383,000	1,511,000
Total Expenses	8,777,000	8,518,000
Total Operating Income As Reported	1,476,000	1,752,000
Diluted Average Shares	1,650,000	1,649,000
Basic Average Shares	1,631,000	1,630,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	1,383,000	1,511,000
Net Income Common Stockholders	1,383,000	1,511,000
Net Income	1,383,000	1,511,000
Net Income Including Noncontrolling Interests	1,383,000	1,511,000
Net Income Discontinuous Operations	11,000	-109,000
Net Income Continuous Operations	1,372,000	1,620,000
Earnings From Equity Interest Net Of Tax	6,000	1,000
Tax Provision	238,000	455,000
Pretax Income	1,604,000	2,074,000
Other Income Expense	165,000	143,000
Other Non Operating Income Expenses	165,000	-223,000
Net Non Operating Interest Income Expense	-37,000	179,000
Interest Expense Non Operating	37,000	36,000
Operating Income	1,476,000	1,752,000
Operating Expense	3,940,000	3,825,000
Other Operating Expenses			-11,000
Depreciation Amortization Depletion Income Statement	290,000	297,000
Depreciation And Amortization In Income Statement	290,000	297,000
Amortization	290,000	297,000
Amortization Of Intangibles Income Statement	290,000	297,000
Research And Development	2,397,000	2,330,000
Selling General And Administration	1,253,000	1,198,000
Gross Profit	5,416,000	5,577,000
Cost Of Revenue	4,837,000	4,693,000
Total Revenue	10,253,000	10,270,000
Operating Revenue	10,253,000	10,270,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	67,000	65,000
Ordinary Shares Number	1,630,411	1,630,000
Share Issued	1,697,411	1,695,000
Total Debt	3,871,000	3,847,000
Tangible Book Value	22,964,000	21,168,000
Invested Capital	67,686,000	66,221,000
Working Capital	18,122,000	17,492,000
Net Tangible Assets	22,964,000	21,168,000
Capital Lease Obligations	647,000	625,000
Common Stock Equity	64,462,000	62,999,000
Total Capitalization	66,812,000	65,347,000
Total Equity Gross Minority Interest	64,462,000	62,999,000
Stockholders Equity	64,462,000	62,999,000
Gains Losses Not Affecting Retained Earnings	-72,000	-3,000
Other Equity Adjustments	-72,000	-3,000
Treasury Stock	7,421,000	7,079,000
Retained Earnings	8,082,000	6,699,000
Additional Paid In Capital	63,856,000	63,365,000
Capital Stock	17,000	17,000
Common Stock	17,000	17,000
Total Liabilities Net Minority Interest	15,180,000	13,927,000
Total Non Current Liabilities Net Minority Interest	4,674,000	4,472,000
Other Non Current Liabilities	1,370,000	1,186,000
Non Current Deferred Liabilities	307,000	313,000
Non Current Deferred Taxes Liabilities	307,000	313,000
Long Term Debt And Capital Lease Obligation	2,997,000	2,973,000
Long Term Capital Lease Obligation	647,000	625,000
Long Term Debt	2,350,000	2,348,000
Current Liabilities	10,506,000	9,455,000
Other Current Liabilities	850,000	402,000
Current Debt And Capital Lease Obligation	874,000	874,000
Current Debt	874,000	874,000
Other Current Borrowings	874,000	874,000
Pensionand Other Post Retirement Benefit Plans Current	1,280,000	1,645,000
Payables And Accrued Expenses	7,502,000	6,534,000
Current Accrued Expenses	4,505,000	3,605,000
Payables	2,997,000	2,929,000
Dueto Related Parties Current			476,000
Accounts Payable	2,997,000	2,929,000
Total Assets	79,642,000	76,926,000
Total Non Current Assets	51,014,000	49,979,000
Other Non Current Assets	6,317,000	5,452,000
Non Current Deferred Assets	476,000	384,000
Non Current Deferred Taxes Assets	476,000	384,000
Investments And Advances			149,000
Long Term Equity Investment			149,000
Goodwill And Other Intangible Assets	41,498,000	41,831,000
Other Intangible Assets	16,154,000	16,705,000
Goodwill	25,344,000	25,126,000
Net PPE	2,723,000	2,312,000
Accumulated Depreciation	-2,752,000	-2,616,000
Gross PPE	5,475,000	4,928,000
Construction In Progress	646,000	508,000
Other Properties	3,795,000	3,453,000
Properties	1,034,000	967,000
Current Assets	28,628,000	26,947,000
Other Current Assets	2,201,000	2,160,000
Assets Held For Sale Current
Inventory	8,045,000	7,920,000
Finished Goods	2,545,000	2,243,000
Work In Process	4,748,000	4,768,000
Raw Materials	752,000	909,000
Receivables	6,035,000	6,315,000
Other Receivables			628,000
Duefrom Related Parties Current			113,000
Accounts Receivable	6,035,000	6,315,000
Cash Cash Equivalents And Short Term Investments	12,347,000	10,552,000
Other Short Term Investments	6,762,000	5,013,000
Cash And Cash Equivalents	5,585,000	5,539,000

Cash Flow

	2026	2025	2024
Free Cash Flow	2,566,000	2,378,000
Repurchase Of Capital Stock	-355,000	-160,000
Issuance Of Debt	0	0
Capital Expenditure	-389,000	-222,000
Income Tax Paid Supplemental Data	30,000	66,000
End Cash Position	5,596,000	5,556,000
Beginning Cash Position	5,556,000	4,825,000
Changes In Cash	40,000	731,000
Financing Cash Flow	-350,000	-328,000
Cash Flow From Continuing Financing Activities	-350,000	-328,000
Proceeds From Stock Option Exercised	5,000	116,000
Net Common Stock Issuance	-355,000	-160,000
Common Stock Payments	-355,000	-160,000
Net Issuance Payments Of Debt	0	0
Net Short Term Debt Issuance
Short Term Debt Issuance
Net Long Term Debt Issuance	0	0
Long Term Debt Issuance	0	0
Investing Cash Flow	-2,565,000	-1,541,000
Cash From Discontinued Investing Activities		1,348,000
Cash Flow From Continuing Investing Activities	-2,565,000	-2,889,000
Net Other Investing Changes			31,000
Net Investment Purchase And Sale	-2,176,000	-2,633,000
Sale Of Investment	778,000	797,000
Purchase Of Investment	-2,954,000	-3,430,000
Net Business Purchase And Sale		-44,000	0
Purchase Of Business		-44,000	0
Net PPE Purchase And Sale	-389,000	-222,000
Purchase Of PPE	-389,000	-222,000
Operating Cash Flow	2,955,000	2,600,000
Cash From Discontinued Operating Activities		296,000
Cash Flow From Continuing Operating Activities	2,955,000	2,304,000
Change In Working Capital	456,000	-1,386,000
Change In Other Working Capital			30,000
Change In Payables And Accrued Expense	609,000	-910,000
Change In Accrued Expense	713,000	-322,000
Change In Payable	-104,000	-588,000
Change In Account Payable	-104,000	-588,000
Change In Prepaid Assets	-308,000	248,000
Change In Inventory	-125,000	-610,000
Change In Receivables	280,000	-114,000
Changes In Account Receivables	280,000	-114,000
Other Non Cash Items	28,000	91,000
Stock Based Compensation	487,000	486,000
Deferred Tax	-79,000	1,083,000
Deferred Income Tax	-79,000	1,083,000
Depreciation Amortization Depletion	757,000	751,000
Depreciation And Amortization	757,000	751,000
Amortization Cash Flow	551,000	557,000
Amortization Of Intangibles	551,000	557,000
Depreciation	206,000	194,000
Operating Gains Losses	-66,000
Gain Loss On Investment Securities	-66,000
Net Income From Continuing Operations	1,372,000	1,620,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $7.4B ▲ $10.3B +37.8%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 50.2% ▲ 52.8% +2.6pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 19.8% ▲ 14.4% -5.4pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 9.5% ▲ 13.5% +4.0pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$10.3B/qtr (≈$41.0B ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

2.72x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$2.6B

vs Positive

Operating Cash Flow

$3.0B

Latest quarter · Buffett's cash reality check

ROIC

1.7%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

13.6x

Net Assets: $64.5B

Asset Context — Semiconductors

This company's primary assets are likely intangible (brand, IP, talent, network effects) and don't appear on the balance sheet. Net Assets may significantly understate intrinsic value. ROIC and free cash flow are more reliable indicators of business quality.

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry Comparison

Semiconductors — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
AMD	$537.37	$876.2B	179.72	52.8%	13.5%	$10.3B
NVDA NVIDIA Corporation	$210.69	$5,103.1B	32.3	74.1%	63.0%	$253.5B
INTC Intel Corporation	$133.99	$673.4B	N/A	37.2%	-5.9%	$53.8B
QCOM QUALCOMM Incorporated	$226.11	$238.3B	24.3	54.8%	22.3%	$44.5B
AVGO Broadcom Inc.	$411.35	$1,957.0B	68.2	76.3%	38.8%	$75.5B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.40%

Low — management has little skin in the game

Return on Equity (ROE)

2.1%

Weak — poor returns on equity

Return on Assets (ROA)

1.7%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$1.9B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+0.6% YoY

Debt is roughly stable

Leadership Team

Lisa Su Ph.

Chair, President & CEO

Age 55

Pay: $4,540,876

0.328% of net income

Jean Hu Ph.

Executive VP, CFO & Treasurer

Age 62

Pay: $1,976,642

0.143% of net income

Paul Darren Grasby

Executive VP, Chief Sales Officer & President AMD EMEA

Age 55

Pay: $2,180,902

0.158% of net income

Keivan Keshvari

Senior Vice President of Global Operations & Quality

Matthew Ramsay

Vice President of Financial Strategy & Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	8.93%	145,574,284
Vanguard Capital Management LLC	6.50%	105,940,266
State Street Corporation	4.59%	74,771,220
Geode Capital Management, LLC	2.44%	39,791,086
Vanguard Portfolio Management LLC	2.31%	37,603,675
Price (T.Rowe) Associates Inc	1.77%	28,846,470
JPMORGAN CHASE & CO	1.49%	24,248,547
Morgan Stanley	1.46%	23,781,608

⚠️ Very high beta — extreme price volatility

Risk Analysis

Beta (Market Risk)

2.49

High volatility — moves more than the market

Short Interest

2.7% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.06x

Conservative balance sheet — low financial risk

Current Ratio

2.73x

Strong liquidity — Graham approved

52-Week Price Range

Low: $126.82 Current: $537.37 High: $558.37

Currently at 95% of 52-week range

Advanced Micro Devices, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis