AMD

Advanced Micro Devices, Inc.Technology / SemiconductorsINTACT

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.

Share Price
$516.13
52W: $149.85 - $584.73
DCF Fair Value
$123.90
-316.6% Premium
P/E (TTM)
131.3x
ROIC
13%
Operating Margin
17.3%
FCF Yield
1%
Debt / Equity
0.06x
Piotroski Score
8/9
Altman Z-Score
2.81
Market Cap
$842.6B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($123.90)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$123.90
MOS Buy Target (-25%)
$92.93
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$516.13
DCF Fair Value
$124.08
-316% Premium
$8,841M
$100M$8,841M (Reported)$50,000M
8.7%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
-$8,800M (Net Cash)
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$82.3B
PV of Terminal Value
$111.4B
Implied Enterprise Value
$193.7B
Implied Equity Value
$202.5B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$9,610$10,446$11,355$12,343$13,417$14,021$14,651$15,311$16,000$16,720
Present Value (PV)$8,817$8,792$8,768$8,744$8,720$8,360$8,015$7,684$7,367$7,063

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-755.2% Premium
$60.35

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $3.93BVPS: $41.19
Revised Graham Formula-566.4% Premium
$77.45

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings1% Yield
$5.15 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $8.4BYield: 1%

Reverse DCF: Market Growth Expectation

SPECULATIVE BARRIER
26.6% CAGR (Next 10 Yrs)

At the current price of $516.13, the market is assuming the business will compound Free Cash Flow at 26.6% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
⚠ High expectations: Leaves minimal margin of safety for operational hiccups.
Autonomous Thesis Underwriting

Surveil AMD with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Advanced Micro Devices, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 17.3% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Advanced Micro Devices, Inc. (AMD) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Advanced Micro Devices, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Advanced Micro Devices, Inc. has an estimated DCF intrinsic fair value of $123.90 per share compared to its current market price of $516.13. This represents an estimated 316.6% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $60.35.

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