# Advanced Micro Devices Inc. (AMD)

> AMD designs and sells computer chips and related software for data centers, personal computers, game consoles, and embedded equipment.

- Exchange: NASDAQ Global Select Market · Sector: Technology · Industry: Semiconductors
- Headquarters: Santa Clara, California, United States
- Founded: 1969
- Employees: 31,000 (December 27, 2025)
- SEC CIK: 0000002488 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000002488))
- Full page: https://inspectstocks.com/stocks/amd
- Data as of: price 2026-09-25; newest filing used 2026-08-05; latest fiscal period ended 2026-06-27

## Grade

**A+** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $41.3B | $21.9B |
| Revenue growing recently | passed | $41.3B | $34.6B |
| Free cash flow positive | passed | $8.4B |  |
| Free cash flow growing overall | passed | $8.4B | $1.9B |
| Free cash flow growing recently | passed | $8.4B | $6.7B |

Business quality (the + / − mark): 5 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 15.6% |  |
| Healthy profit margin | passed | 15.6% |  |
| Strong operating margin | passed | 15.7% |  |
| Good return on equity | failed | 10.2% |  |
| Debt under control | passed | 0.08 |  |
| Turns sales into cash | passed | 20.3% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $41.3B |
| Net income, trailing twelve months | $6.4B |
| Free cash flow, trailing twelve months | $8.4B |
| Net margin | 15.6% |
| Operating margin | 15.7% |
| Return on equity | 10.2% |
| Debt to equity | 0.08 |
| Diluted EPS, trailing twelve months | $3.89 |
| Share price | $630.63 |
| Market value | $1.03T |
| Price / earnings | 162.1x |
| Price / sales | 24.9x |

## What the business does

AMD designs chips that process computer instructions, including central processing units (CPUs), and chips that handle graphics and other intensive calculations, including graphics processing units (GPUs). Its products are used in servers and artificial intelligence (AI) systems, personal computers, game consoles, and equipment for industries such as communications, automotive, and healthcare. AMD also provides software and networking chips that help customers use its processors and accelerators.

### How it makes money

- **Data Center: server processors, AI accelerators, graphics chips, and networking products** (58.2% (Q2 FY2026, quarter ended June 27, 2026)) — Sells chips and related products to cloud data centers, server makers, and other customers, directly and through manufacturers and distributors.
- **Client and Gaming: PC processors and graphics, plus chips designed for game consoles** (33.3% (Q2 FY2026, quarter ended June 27, 2026)) — Sells PC chips mainly to computer makers and distributors; console makers buy custom chips for their systems. The segment also includes graphics products.
- **Embedded: processors and programmable chips for specialized equipment** (8.5% (Q2 FY2026, quarter ended June 27, 2026)) — Sells directly and through distributors and equipment makers to customers in fields including industrial systems, automotive, communications, and healthcare.

### Products

- **EPYC processors** — Processors for servers used in cloud computing, business systems, and scientific computing.
- **Instinct accelerators and Helios** — Instinct chips perform calculations used to train and run AI systems. Helios is a rack-sized data-center system combining processors, graphics chips, networking equipment, and software.
- **Ryzen processors and accelerated processing units (APUs)** — Chips for desktop and notebook computers; some combine a processor and graphics functions on one chip. Ryzen PRO versions are designed for business computers.
- **Radeon graphics and custom console chips** — Radeon graphics chips are used in computers and workstations. AMD also designs custom chips for game consoles, including Sony PlayStation 5 and Microsoft Xbox Series S and X.
- **Programmable and embedded chips** — Field-programmable gate arrays (FPGAs), adaptive chips, and embedded processors used in equipment that may need specialized control, connectivity, or computing.
- **Pensando networking products** — Data processing units (DPUs) and network interface cards that handle data-center networking tasks and connect groups of computing chips.

### Customers

- Large cloud companies and private data centers buy server processors, AI accelerators, and networking products directly or through server makers and manufacturers.
- Server makers and original design manufacturers (ODMs), which design or build systems for branded companies and data centers, incorporate AMD chips into servers and other equipment.
- Personal computer makers buy processors and graphics products for desktop and notebook computers; distributors also resell AMD products.
- Game-console makers and their manufacturing partners use AMD-designed chips in console systems.
- Equipment makers and distributors buy embedded processors and programmable chips for products in areas such as automotive, industrial systems, communications, aerospace, and healthcare.
- AI companies including OpenAI, Meta, and Anthropic have announced arrangements involving planned deployments of AMD data-center GPUs.

### Competitors

- Intel Corporation (INTC) — Server and PC processors, graphics chips, and embedded processors.
- NVIDIA Corporation (NVDA) — Data-center graphics chips and AI accelerators, PC graphics, and embedded computing products.
- Broadcom Inc. (AVGO) — Embedded chips used in communications and other equipment.
- Marvell Technology, Inc. (MRVL) — Embedded and networking chips.
- Lattice Semiconductor Corporation (LSCC) — Programmable chips used in embedded systems.
- Microchip Technology Incorporated (MCHP) — Its Microsemi-origin business competes in programmable chips and related embedded products; Microsemi is a business of Microchip.

### What it depends on

- AMD relies on outside manufacturers for chip production. It uses Taiwan Semiconductor Manufacturing Company for many products, and also names GLOBALFOUNDRIES, United Microelectronics Corporation, and Samsung for certain production.
- Outside companies in the Asia-Pacific region package and test AMD chips, including its assembly, test, mark, and packaging joint ventures and other partners.
- A small number of customers account for a substantial part of AMD's revenue and receivables, according to the company.
- AMD products depend in part on other companies making compatible computer components and software, including software that runs on AMD chips.

### What could go wrong

- AMD competes in fast-changing chip markets where Intel, NVIDIA, and other companies introduce competing products; delays or products that do not meet customer needs could affect sales.
- AMD depends on outside companies for chip manufacturing, materials, packaging, and testing. Shortages, production delays, or lower manufacturing yields could limit the products it can supply.
- U.S. export restrictions can limit sales of certain chips to customers in some countries. The company reported that restrictions on MI308 data-center GPU shipments to China led to inventory and related charges in the prior-year quarter.

## More on this company

- [Overview](https://inspectstocks.com/stocks/amd)
- [Financial statements](https://inspectstocks.com/stocks/amd/financials)
- [Competitors](https://inspectstocks.com/stocks/amd/peers)
- [Earnings](https://inspectstocks.com/stocks/amd/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.