Top line accelerating.
+34.4% YoY versus +13.7% prior. 3y CAGR +13.6%.
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Technology · Market Cap: $834.2B
Fundamentals as of 2026-03-28
All analysis on this page is for educational purposes only and does not constitute financial advice. Fair values are model-based estimates. Always do your own research.
The Question
Concerns — Advanced Micro Devices, Inc.'s 7.7% ROE is below sector median.
Financial story
Concerns — Advanced Micro Devices, Inc.'s 7.7% ROE and 0.24 debt-to-equity warrant a closer look at the underlying business.
Bottom line: AMD currently has no legendary investor models qualifying — see /stock/AMD/valuation for the per-model breakdown, but earns a C sector grade (49/100) in Technology. Use the per-tab analysis to form your own view. Drill into the valuation breakdown and sector ranking for the full picture.
How does AMD compare?
Near $512, AMD's price discounts a successful transition into the clear number-two in AI accelerators. Data Center revenue already hit a record $5.8 billion (+57%) last quarter, and the stock now trades above the average analyst target of about $486 — so the market is paying in advance for the OpenAI, Meta and Oracle commitments to convert into the 'tens of billions' of 2027 AI revenue that management has guided toward.
AMD trades near 170x trailing and about 59x forward earnings — roughly 2.5x Nvidia's forward multiple. The trailing figure is inflated by a depressed GAAP earnings base (stock-based compensation, China MI308 write-downs and warrant accounting), not by weak profitability: Q1 operating margin was 14.4% GAAP and gross margin about 53%. The ~59x forward multiple is the cleaner gauge of how much AI growth is already priced in.
AMD is the credible number two: it holds an estimated 5–7% of AI-accelerator revenue versus Nvidia's 80%-plus. On silicon it competes — the MI350X matches Nvidia's B200 on FP8 compute and leads on memory at 288GB — but Nvidia's CUDA software ecosystem remains the entrenched standard. The 2026 contest pits AMD's MI400/MI450 'Helios' racks against Nvidia's Vera Rubin, with both generations shipping in the second half.
The three the price seems to underweight are valuation, dilution and China. Near $512 the stock sits above its ~$486 consensus target, so execution must stay flawless. The OpenAI deal granted a warrant for up to 160 million shares (~10% of the company), a real dilution overhang. And China is about 20% of revenue but structurally constrained by export rules, with up to ~$1.8 billion of restriction-related impact flagged for the year.
The consensus 12-month target is about $486 across 51 analysts, with a range from roughly $225 to $665 (Barclays at the top). Notably, AMD's ~$512 price already trades above that average even as recent revisions ran bullish — Citigroup upgraded to a $575 target, Bank of America moved to $560 and TD Cowen to $600. In short, the most optimistic analysts still see room above while the average already reads the price as roughly full.
See exactly where AMD ranks
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Sign in to see the rankingAMD sits at #86 in Technology with a C grade (49/100).
Strength. Data Center revenue hit a record $5.8B (+57%) while total sales reached $10.25B (+38%), and AMD stacked marquee AI commitments — OpenAI's 6 gigawatts, Meta, and Oracle's Helios — that frame it as the credible number-two in accelerators. Whether that backlog converts into the *tens of billions* management promises for 2027 is the question the $512 price is busy answering.
Risk. At roughly 170x trailing earnings and ~59x forward — about 2.5x Nvidia's multiple — the stock already sits above the average analyst target ($486 versus $512), so the AI ramp looks largely priced in. The OpenAI deal also carries a warrant for up to 160 million shares, near 10% of the company, a dilution bill the multiple has yet to fully digest.

| Firm | Target | Upside | vs. price | Rating | Recent move | Date |
|---|---|---|---|---|---|---|
![]() Barclays | $665 | +24% | Overweight | Street-high target | Jun 1 | |
Mizuho | $615 |
+34.4% YoY versus +13.7% prior. 3y CAGR +13.6%.
+34.4%Net margin 12.5% versus 6.4% prior (+6.2pp). Operating 10.7%.
12.5%P/E 152.4x — 50% above the 5y median of 101.5x. Forward 71.9x hints at EPS expansion next year.
152.4x


| +14% |
| Outperform |
| raised 515 to 615 |
| Jun 1 |
![]() TD Cowen Joshua Buchalter | $600 | +12% | Buy | raised 500 to 600 | Jun 6 |
![]() Citigroup Atif Malik | $575 | +7% | Buy | upgrade Neutral to Buy | Jun 12 |
DBS DBS Amanda Tan | $570 | +6% | Buy | — | Jun 10 |
![]() Bank of America Vivek Arya | $560 | +4% | Buy | raised 500 to 560 | Jun 11 |