Key Takeaways
- Quality: free cash flow of $7.4B is broadly in line with net income of roughly $7.6B, and debt-to-equity of 0.13 supports a Quality score of 79/100.
- Growth: revenue grew 44.7% and earnings 93.8% over the trailing twelve months, against a five-year revenue CAGR of 13.6%.
- Opportunity: a P/E of 123.87, EV/Revenue of 19.81 and a price in the upper end of its two-year range leave the Opportunity score at 8/100.
This Advanced Micro Devices, Inc. stock analysis weighs exceptional operating momentum against an equally exceptional price tag. Trailing-twelve-month revenue grew 44.7% to $45.4B, yet the shares trade at $579.71 and a P/E of 123.87. StreetBriefs’ scoring model rates the stock a Hold, a research signal rather than a recommendation to transact.
What Is Happening With the Stock Price
At $579.71, AMD is in the upper end of its two-year range of $85.76 to $633.91, not far below the two-year high. The market capitalization is $950.78B. A stock that has risen so far within two years has priced in a great deal of future growth, and that raises its sensitivity to any slowdown or missed expectations.
Quality: Is This a Financially Sound Business?
Quality is the strongest pillar, with a score of 79/100. Gross margin is 56.0%, operating margin 17.8% and net margin 16.8%. Return on equity is 12.0% and return on assets 5.9%, modest figures that likely reflect a large equity base. Cash flow supports earnings: net income works out to roughly $7.6B (16.8% of $45.4B), and free cash flow was $7.4B, so the two are broadly in line. The balance sheet is conservative, with debt-to-equity of 0.13, a current ratio of 2.72 and a quick ratio of 1.73. This Advanced Micro Devices, Inc. stock analysis finds little to worry about on financial health. Even so, a free cash flow yield of 0.8% shows how little cash the market capitalization currently buys.
Growth: Does This Company Have Real Upside?
Revenue grew 44.7% over the trailing twelve months, well above the five-year compound annual rate of 13.6%, and earnings grew 93.8% over the trailing twelve months. The jump in both marks a sharp acceleration, but it comes against a longer record of more moderate growth, so extrapolating the recent pace would be a mistake. Gross margin of 56.0% indicates the business can scale profitably. EV/Revenue is 19.81, which shows how much future growth investors are already paying for. The Growth score is 69/100.
Opportunity: Is Now a Good Time to Enter?
This is where the model is most cautious. The P/E ratio is 123.87 on earnings per share of $4.68, EV/EBITDA is 80.79 and price-to-book is 13.90. Combined with the 0.8% free cash flow yield and a price near the top of its two-year range, valuation offers little margin of safety. Earnings growth of 93.8% could shrink the multiple if sustained, but that is a conditional outcome and not something the data can promise. The Opportunity score is just 8/100.
Advanced Micro Devices, Inc. Stock Analysis: The Bottom Line
The bull case is a high-quality, cash-generative, nearly debt-free business growing at an accelerating pace. The bear case is valuation: at 123.87 times earnings and 19.81 times revenue, the shares could fall sharply if growth slows toward its 13.6% five-year rate or if results disappoint, and all equities carry the risk of loss. With Quality at 79/100, Growth at 69/100, Opportunity at 8/100 and a recommendation score of 52/100, the Hold signal reflects excellent fundamentals offset by a demanding price. Buy / Hold / Sell reflects StreetBriefs’ quantitative scoring model, a data-driven signal for further research, not a personalized recommendation to transact.
Financial Metrics Summary
| Metric | Value |
|---|---|
| Price & Valuation | |
| Current Price | $579.71 |
| 2-Year Low | $85.76 |
| 2-Year High | $633.91 |
| Market Cap | $950.78B |
| P/E Ratio | 123.87 |
| EV / Revenue | 19.81 |
| Our Scores | |
| Quality Score | 79 / 100 |
| Growth Score | 69 / 100 |
| Opportunity Score | 8 / 100 |
| Profitability | |
| Earnings Per Share | $4.68 |
| Return on Assets | 5.9% |
| Return on Equity | 12.0% |
| Net Profit Margin | 16.8% |
| Gross Margin | 56.0% |
| Operating Margin | 17.8% |
| Growth | |
| Revenue Growth (5Y CAGR) | 13.6% |
| Revenue Growth (TTM) | 44.7% |
| Earnings Growth (TTM) | 93.8% |
| Balance Sheet | |
| Debt-to-Equity | 0.13 |
| Current Ratio | 2.72 |
| Quick Ratio | 1.73 |
| Income & Dividends | |
| Dividend Yield | 0.0% |
| Payout Ratio | 0.0% |
Data as of November 13, 2026
Our Three-Pillar Assessment
| Quality |
79/100 |
| Growth |
69/100 |
| Opportunity |
8/100 |
Quality measures business fundamentals: profitability, cash flow discipline, and balance sheet strength.
Growth captures revenue momentum, gross margin scalability, and the Rule of 40 efficiency test.
Opportunity signals entry timing: current valuation versus history and price position in the 2-year range.
Current price: $579.71 trading 9% below its 2-year high of $633.91.
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This analysis is done using financial data from Yahoo Finance.
Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions.
