Advanced Micro Devices (AMD)
Market Price (5/26/2026): $508.5 | Market Cap: $829.4 BilSector: Information Technology | Industry: Semiconductors
Advanced Micro Devices (AMD)
Market Price (5/26/2026): $508.5Market Cap: $829.4 BilSector: Information TechnologyIndustry: Semiconductors
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 35% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 23%, CFO LTM is 9.7 Bil, FCF LTM is 8.6 Bil Stock buyback supportStock Buyback 3Y Total is 5.0 Bil Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, Digital Content & Streaming, and 5G & Advanced Connectivity. Show more. | Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% | Expensive valuation multiplesP/SPrice/Sales ratio is 22x, P/EBITPrice/EBIT or Price/(Operating Income) ratio is 162x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 85x, P/EPrice/Earnings or Price/(Net Income) is 164x Stock price has recently run up significantly6M Rtn6 month market price return is 144%, 12M Rtn12 month market price return is 357% Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 118% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.6% Key risksAMD key risks include [1] fierce competition from NVIDIA, Show more. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 35% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 23%, CFO LTM is 9.7 Bil, FCF LTM is 8.6 Bil |
| Stock buyback supportStock Buyback 3Y Total is 5.0 Bil |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, Digital Content & Streaming, and 5G & Advanced Connectivity. Show more. |
| Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% |
| Expensive valuation multiplesP/SPrice/Sales ratio is 22x, P/EBITPrice/EBIT or Price/(Operating Income) ratio is 162x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 85x, P/EPrice/Earnings or Price/(Net Income) is 164x |
| Stock price has recently run up significantly6M Rtn6 month market price return is 144%, 12M Rtn12 month market price return is 357% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 118% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.6% |
| Key risksAMD key risks include [1] fierce competition from NVIDIA, Show more. |
Qualitative Assessment
AI Analysis | Feedback
1. Exceptional Q1 2026 Financial Results Driven by Data Center and AI Growth.
Advanced Micro Devices reported an outstanding first quarter for 2026, with revenue reaching $10.3 billion, a 38% increase year-over-year, significantly exceeding analyst expectations. The Data Center segment was a primary growth engine, seeing a 57% year-over-year revenue surge to $5.8 billion, propelled by robust demand for AMD EPYC processors and AMD Instinct GPUs. Non-GAAP diluted earnings per share also outperformed forecasts at $1.37, up 43% from the prior year.
2. Strategic Expansion in AI Infrastructure with Key Partnerships and Product Launches.
AMD solidified its position in the burgeoning AI market through significant partnerships and advanced product deployments. Notably, in February 2026, the company announced a multi-year agreement with Meta Platforms for the deployment of up to 6 gigawatts of AMD Instinct GPUs to bolster Meta's AI infrastructure, with initial deployments expected in the second half of 2026. Furthermore, AMD initiated production ramp of its 6th Gen AMD EPYC "Venice" processors on TSMC's advanced 2nm process technology in May 2026, marking a critical step for next-generation AI infrastructure.
Show more
Stock Movement Drivers
Fundamental Drivers
The 112.9% change in AMD stock from 1/31/2026 to 5/26/2026 was primarily driven by a 40.9% change in the company's P/E Multiple.| (LTM values as of) | 1312026 | 5262026 | Change |
|---|---|---|---|
| Stock Price ($) | 236.73 | 503.89 | 112.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 32,027 | 37,454 | 16.9% |
| Net Income Margin (%) | 10.3% | 13.4% | 29.6% |
| P/E Multiple | 116.4 | 164.1 | 40.9% |
| Shares Outstanding (Mil) | 1,626 | 1,631 | -0.3% |
| Cumulative Contribution | 112.9% |
Market Drivers
1/31/2026 to 5/26/2026| Return | Correlation | |
|---|---|---|
| AMD | 112.9% | |
| Market (SPY) | 8.8% | 59.1% |
| Sector (XLK) | 28.8% | 73.7% |
Fundamental Drivers
The 96.7% change in AMD stock from 10/31/2025 to 5/26/2026 was primarily driven by a 39.7% change in the company's Net Income Margin (%).| (LTM values as of) | 10312025 | 5262026 | Change |
|---|---|---|---|
| Stock Price ($) | 256.12 | 503.89 | 96.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 29,600 | 37,454 | 26.5% |
| Net Income Margin (%) | 9.6% | 13.4% | 39.7% |
| P/E Multiple | 146.7 | 164.1 | 11.9% |
| Shares Outstanding (Mil) | 1,623 | 1,631 | -0.5% |
| Cumulative Contribution | 96.7% |
Market Drivers
10/31/2025 to 5/26/2026| Return | Correlation | |
|---|---|---|
| AMD | 96.7% | |
| Market (SPY) | 10.7% | 57.0% |
| Sector (XLK) | 23.5% | 71.3% |
Fundamental Drivers
The 417.6% change in AMD stock from 4/30/2025 to 5/26/2026 was primarily driven by a 110.1% change in the company's Net Income Margin (%).| (LTM values as of) | 4302025 | 5262026 | Change |
|---|---|---|---|
| Stock Price ($) | 97.35 | 503.89 | 417.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 25,785 | 37,454 | 45.3% |
| Net Income Margin (%) | 6.4% | 13.4% | 110.1% |
| P/E Multiple | 96.3 | 164.1 | 70.4% |
| Shares Outstanding (Mil) | 1,623 | 1,631 | -0.5% |
| Cumulative Contribution | 417.6% |
Market Drivers
4/30/2025 to 5/26/2026| Return | Correlation | |
|---|---|---|
| AMD | 417.6% | |
| Market (SPY) | 36.9% | 50.3% |
| Sector (XLK) | 77.4% | 64.0% |
Fundamental Drivers
The 463.8% change in AMD stock from 4/30/2023 to 5/26/2026 was primarily driven by a 139.1% change in the company's Net Income Margin (%).| (LTM values as of) | 4302023 | 5262026 | Change |
|---|---|---|---|
| Stock Price ($) | 89.37 | 503.89 | 463.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 23,601 | 37,454 | 58.7% |
| Net Income Margin (%) | 5.6% | 13.4% | 139.1% |
| P/E Multiple | 109.5 | 164.1 | 49.8% |
| Shares Outstanding (Mil) | 1,618 | 1,631 | -0.8% |
| Cumulative Contribution | 463.8% |
Market Drivers
4/30/2023 to 5/26/2026| Return | Correlation | |
|---|---|---|
| AMD | 463.8% | |
| Market (SPY) | 87.5% | 59.3% |
| Sector (XLK) | 150.6% | 68.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| AMD Return | 57% | -55% | 128% | -18% | 77% | 118% | 410% |
| Peers Return | 59% | -41% | 107% | 63% | 33% | 86% | 681% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 9% | 99% |
Monthly Win Rates [3] | |||||||
| AMD Win Rate | 50% | 33% | 58% | 42% | 42% | 80% | |
| Peers Win Rate | 63% | 40% | 68% | 60% | 57% | 52% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | |
Max Drawdowns [4] | |||||||
| AMD Max Drawdown | -25% | -63% | -27% | -44% | -40% | -26% | |
| Peers Max Drawdown | -24% | -51% | -20% | -36% | -40% | -21% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: INTC, NVDA, AVGO, QCOM, MRVL. See AMD Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 5/26/2026 (YTD)
How Low Can It Go
| Event | AMD | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -31.8% | -18.8% |
| % Gain to Breakeven | 46.6% | 23.1% |
| Time to Breakeven | 36 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -30.1% | -7.8% |
| % Gain to Breakeven | 43.0% | 8.5% |
| Time to Breakeven | 371 days | 18 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -17.1% | -9.5% |
| % Gain to Breakeven | 20.6% | 10.5% |
| Time to Breakeven | 12 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -62.8% | -24.5% |
| % Gain to Breakeven | 168.6% | 32.4% |
| Time to Breakeven | 459 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -34.3% | -33.7% |
| % Gain to Breakeven | 52.2% | 50.9% |
| Time to Breakeven | 128 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -41.4% | -19.2% |
| % Gain to Breakeven | 70.8% | 23.8% |
| Time to Breakeven | 100 days | 105 days |
In The Past
Advanced Micro Devices's stock fell -31.8% during the 2025 US Tariff Shock. Such a loss loss requires a 46.6% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| Event | AMD | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -31.8% | -18.8% |
| % Gain to Breakeven | 46.6% | 23.1% |
| Time to Breakeven | 36 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -30.1% | -7.8% |
| % Gain to Breakeven | 43.0% | 8.5% |
| Time to Breakeven | 371 days | 18 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -62.8% | -24.5% |
| % Gain to Breakeven | 168.6% | 32.4% |
| Time to Breakeven | 459 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -34.3% | -33.7% |
| % Gain to Breakeven | 52.2% | 50.9% |
| Time to Breakeven | 128 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -41.4% | -19.2% |
| % Gain to Breakeven | 70.8% | 23.8% |
| Time to Breakeven | 100 days | 105 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -61.2% | -6.8% |
| % Gain to Breakeven | 157.4% | 7.3% |
| Time to Breakeven | 302 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -41.5% | -17.9% |
| % Gain to Breakeven | 71.1% | 21.8% |
| Time to Breakeven | 162 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -29.4% | -15.4% |
| % Gain to Breakeven | 41.6% | 18.2% |
| Time to Breakeven | 2347 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -76.8% | -53.4% |
| % Gain to Breakeven | 331.7% | 114.4% |
| Time to Breakeven | 373 days | 1085 days |
| Summer 2007 Credit Crunch | ||
| % Loss | -24.2% | -8.6% |
| % Gain to Breakeven | 32.0% | 9.5% |
| Time to Breakeven | 3947 days | 47 days |
In The Past
Advanced Micro Devices's stock fell -31.8% during the 2025 US Tariff Shock. Such a loss loss requires a 46.6% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Advanced Micro Devices (AMD)
AI Analysis | Feedback
AMD is a semiconductor company that directly challenges Intel for computer processors (CPUs) and NVIDIA for graphics cards and AI accelerators (GPUs).
AI Analysis | Feedback
- x86 Microprocessors (APUs): Processors designed for desktop and notebook personal computers, often integrating CPU and GPU cores.
- Chipsets: Components that facilitate communication between the processor, memory, and other peripherals within a system.
- Graphics Processing Units (GPUs): Discrete and integrated graphics cards for a range of applications, including consumer PCs, professional workstations, and data centers.
- Server and Embedded Processors: High-performance processors specifically designed for use in servers, data centers, and specialized embedded computing systems.
- Semi-custom System-on-Chip (SoC) Products: Integrated circuits tailored to customer specifications, often combining CPU, GPU, and multimedia technologies, such as those used in game consoles.
- Development Services: Services that assist with the design and integration of AMD's CPU, GPU, and multimedia technologies into customer-specific solutions.
AI Analysis | Feedback
Advanced Micro Devices (AMD) primarily operates on a Business-to-Business (B2B) model, selling its processors, graphics cards, and semi-custom solutions to other companies that integrate them into their final products or services.
The company's major customers include:
- Microsoft Corp. (MSFT): A significant customer for AMD's custom System-on-Chip (SoC) products used in Xbox game consoles, as well as for server processors (EPYC) and accelerators in its Azure cloud computing services.
- Sony Group Corp. (SONY): Another major customer for AMD's custom SoC products powering the PlayStation series of game consoles.
- Hewlett-Packard (HP) Inc. (HPQ): A leading Original Equipment Manufacturer (OEM) that incorporates AMD CPUs and GPUs into its desktop and notebook personal computers.
- Dell Technologies Inc. (DELL): A prominent OEM for personal computers and servers, utilizing AMD processors and graphics solutions in its product lines.
- Alphabet Inc. (GOOGL): The parent company of Google Cloud, which deploys AMD EPYC server processors in its data centers to power its cloud computing services.
- Amazon.com Inc. (AMZN): Through its Amazon Web Services (AWS) division, Amazon utilizes AMD EPYC server processors to deliver cloud infrastructure services.
- Lenovo Group Ltd. (HKG: 0992): A major global OEM for personal computers, workstations, and servers that integrates AMD's CPUs and GPUs into a wide range of its products.
AI Analysis | Feedback
- Taiwan Semiconductor Manufacturing Company (TSM)
- GlobalFoundries (GFS)
- ASE Technology Holding Co., Ltd. (ASX)
- Amkor Technology, Inc. (AMKR)
AI Analysis | Feedback
Lisa Su, Chair and Chief Executive Officer
Lisa Su joined AMD in 2012 and became President and CEO in October 2014, leading a significant turnaround of the company. Before AMD, she held senior leadership roles at Freescale Semiconductor, Inc., including Senior Vice President and General Manager of Networking and Multimedia, and Chief Technology Officer. Prior to Freescale, she spent 13 years at IBM in various engineering and business leadership positions, including Vice President of the Semiconductor Research and Development Center. At IBM, she was involved in developing silicon-on-insulator semiconductor manufacturing technologies and more efficient semiconductor chips, and she formed IBM's Emerging Products group, helping to transform industry standards by replacing aluminum interconnects with copper ones.
Jean Hu, Executive Vice President, Chief Financial Officer, and Treasurer
Jean Hu joined AMD in January 2023. Before joining AMD, she served as CFO of Marvell Technology Group Ltd. from August 2016 to January 2023. She also held CFO roles at QLogic Corporation from April 2011 to August 2016 and served as acting CEO of QLogic from May 2013 to February 2014 and from August 2015 to August 2016. Additionally, she was CFO and Senior Vice President, Business Development at Conexant Systems, Inc. from 2004 to 2011. She serves on the board of directors at Fortinet.
Mark Papermaster, Executive Vice President and Chief Technology Officer
Mark Papermaster joined AMD in October 2011 and is responsible for the company's technical direction and product development, including leading the development of the "Zen" CPU architecture. Before AMD, he was the leader of Cisco's Silicon Engineering Group (2010-2011), Senior Vice President of Devices Hardware Engineering at Apple Inc. for iPod and iPhone products (2008-2010), and held multiple leadership roles at IBM for 26 years (1982-2008), involved in PowerPC technology development and the blade server division.
Rick Bergman, Executive Vice President of Computing and Graphics
Rick Bergman is currently AMD's Executive Vice President of Computing and Graphics, a role he returned to in 2019. He initially joined AMD in 2006 following its acquisition of ATI Technologies. From 2011 to 2019, he served as President and CEO of Synaptics. Before ATI, he held senior management positions at S3 Graphics, Texas Instruments, and IBM. He also served on the board of Maxwell Technologies from 2015 until its acquisition by Tesla in 2019 and was President and CEO of Kymeta Corporation from April 2024 to November 2025.
Victor Peng, President, Adaptive and Embedded Computing Group
Victor Peng rejoined AMD in 2022 as President, Adaptive and Embedded Computing Group, following AMD's acquisition of Xilinx. He previously served as President and CEO of Xilinx from 2018 to 2022, and prior to that, was COO and Executive Vice President & General Manager of Products at Xilinx. Before joining Xilinx in 2008, Peng worked at AMD as Corporate Vice President of the graphics products group silicon engineering. He has held executive and engineering leadership roles at TZero Technologies, MIPS Technologies, Silicon Graphics (SGI), and Digital Equipment Corporation. He announced his retirement from his presidential role at AMD effective August 30, 2024, continuing in an advisory capacity. In February 2025, he joined the Board of Directors of Microchip Technology, and he has also served on the Board of Directors of KLA Corporation since 2019.
AI Analysis | Feedback
Advanced Micro Devices (AMD) faces several key risks to its business, primarily stemming from the highly competitive nature of the semiconductor industry, cyclical demand for certain products, and its manufacturing model.
- Intense Competition and Rapid Technological Obsolescence: AMD operates in highly competitive markets for microprocessors (CPUs) and graphics processing units (GPUs), where it directly competes with established giants like Intel and NVIDIA. AMD's success relies heavily on its ability to continuously innovate and introduce new products with superior features and performance on a timely basis. Failure to keep pace with technological advancements, particularly in critical areas like AI accelerators where NVIDIA holds a dominant position with its CUDA software ecosystem, could lead to a loss of market share and reduced revenue. Intel's aggressive product roadmaps also pose a constant threat in the client and server CPU segments.
- Decline in Gaming Segment Revenue due to Maturing Console Cycles and Customer Concentration: A significant portion of AMD's semi-custom System-on-Chip (SoC) revenue is derived from providing processors for game consoles such as the Sony PlayStation and Microsoft Xbox. These console markets are cyclical, and as current console generations mature, demand for these SoCs naturally declines, leading to a contraction in AMD's gaming segment revenue. AMD's reliance on a limited number of key customers for these high-volume semi-custom products makes it vulnerable to fluctuations in console sales and potential shifts in supplier choices by these manufacturers. For instance, the gaming segment experienced a significant year-over-year decline in revenue in early 2024 due to waning demand as consoles entered their fifth year in the market.
- Dependence on Third-Party Manufacturing and Supply Chain Disruptions: Advanced Micro Devices operates a fabless business model, meaning it relies on third-party foundries, primarily Taiwan Semiconductor Manufacturing Company (TSMC), for the manufacturing of its chips. This dependence exposes AMD to risks related to manufacturing capacity constraints, potential production issues at these foundries, and broader global supply chain disruptions. Such issues can lead to product shortages, delays in bringing new products to market, increased costs, and ultimately, an inability to meet customer demand, thereby negatively impacting revenue and profitability.
AI Analysis | Feedback
The clear emerging threats for Advanced Micro Devices (AMD) are:
- The increasing trend among major customers, particularly public cloud service providers, to design and develop their own custom silicon (CPUs and AI accelerators) for their data centers. This strategic shift directly threatens AMD's market share and revenue from its EPYC server processors and Instinct accelerators by reducing reliance on external vendors for these critical components.
- The growing adoption and performance capabilities of ARM-based processors in core AMD markets, specifically for desktop personal computers, notebooks, and servers. The success of ARM-based solutions like Apple Silicon and the push by other companies into Windows on ARM, alongside the increasing use of ARM server processors by cloud providers, presents a fundamental architectural challenge to AMD's predominant x86 offerings in these segments.
AI Analysis | Feedback
Advanced Micro Devices (AMD) participates in several large and growing addressable markets for its main products and services:
-
Computing and Graphics Segment:
- Processors for Desktop and Notebook Personal Computers (CPUs): The global PC Processor Market was valued at approximately USD 120.15 billion in 2024 and is projected to reach USD 168.26 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 4.3%.
- Discrete and Integrated Graphics Processing Units (GPUs) for PCs: The global discrete GPU market was valued at USD 11.71 billion in 2023 and is anticipated to reach USD 18.67 billion by 2032, expanding at a CAGR of 6.5%. The broader global Graphics Card Market, which includes both discrete and integrated, was valued at USD 23.57 billion in 2025 and is projected to grow to USD 97.4 billion by 2034, exhibiting a CAGR of 17.0%. The overall global GPU market is projected to expand from USD 82.99 billion in 2025 to USD 325.96 billion by 2031, registering a CAGR of 25.61%.
-
Enterprise, Embedded and Semi-Custom Segment:
- Data Center and Professional GPUs (Accelerators): AMD projects the overall data center total addressable market (TAM) to reach USD 1 trillion by 2030 globally, growing from an estimated USD 200 billion in 2025 at a CAGR of over 40%. Specifically for AI accelerators, AMD estimates this market will exceed USD 526 billion by 2028 globally. Other reports suggest the global data center accelerator market was estimated at USD 68.0 billion in 2024 and is projected to reach USD 393.8 billion by 2030, with a CAGR of 34.0%.
- Server and Embedded Processors: The global CPU for Server market was valued at USD 21.45 billion in 2024 and is projected to grow to USD 33.26 billion by 2031, exhibiting a CAGR of 6.2%. Another estimate for the global Server Microprocessor Market is USD 24.0 billion in 2025, expected to reach USD 43.0 billion by 2035 at a CAGR of 6.0%. For embedded solutions, AMD has secured over USD 50 billion in design wins since 2022 for its adaptive and embedded portfolio, which also includes semi-custom solutions.
- Semi-Custom System-on-Chip (SoC) products (Game Consoles): AMD provides custom chips for leading game consoles such as the Sony PlayStation and Microsoft Xbox. AMD has powered over one billion gaming devices, including game consoles, with its processors and graphics from 2008 to 2025. The value of AMD's secured semi-custom designs for various customers, including those in gaming, has been reported as $15 billion since 2022.
AI Analysis | Feedback
Advanced Micro Devices (AMD) is expected to drive future revenue growth over the next 2-3 years through several key areas:
- Accelerated Demand for Data Center AI Processors (Instinct GPUs): AMD anticipates significant growth from its Instinct MI300 series GPUs, including the MI350, MI450, and future MI500 series, which are designed for artificial intelligence and high-performance computing. The company expects its data center AI revenues to achieve a compound annual growth rate (CAGR) of over 80% in the next 3-5 years. This growth is fueled by substantial multi-year deals with major hyperscalers, such as Meta Platforms, which is poised to deploy up to 6 gigawatts (GW) of Instinct GPUs, and a partnership with OpenAI to deploy 6 GW of chips starting in the second half of 2026. AMD's strategy to foster an open software ecosystem with ROCm 7 is also aimed at reducing developer switching costs from competitors.
- Expansion and Market Share Gains in Server CPUs (EPYC Processors): AMD's EPYC server processors are a crucial driver, benefiting from strong demand and an expanding market. The company aims to achieve more than 50% server CPU revenue market share. The overall server CPU market is projected to grow by strong double digits in 2026, with AI-driven CPU workloads contributing significantly to this expansion, projected to fuel an 18% annual growth rate by 2030. Next-generation EPYC CPUs, such as "Turin" (based on Zen 5 architecture) and "Venice" (2nm), are expected to further bolster market share gains in cloud and enterprise environments.
- Growth in the Client and Gaming Segments: AMD expects to achieve a greater than 10% revenue CAGR across its Client and Gaming businesses. The client business, driven by AMD Ryzen processors, experienced 34% year-over-year growth in Q4 2025. AMD projects it will exceed 40% client revenue market share. The introduction of new Ryzen processors featuring integrated AI accelerators, such as the Ryzen 8000 series and upcoming "Strix Point," is set to capitalize on the emerging "AI PC" market, contributing to continued growth in 2026 despite potential broader market contractions.
- Diversification and Expansion in the Embedded Segment: The Embedded segment, encompassing adaptive SoCs, FPGAs, embedded x86 processors, and semi-custom silicon, returned to growth in Q4 2025. AMD anticipates a greater than 10% revenue CAGR for this segment and aims to exceed 70% revenue market share. The company plans to expand opportunities by growing its embedded x86 and semi-custom silicon markets, with automotive AI identified as a multi-billion dollar growth opportunity.
AI Analysis | Feedback
Share Repurchases
- In May 2025, Advanced Micro Devices (AMD) authorized a new $6 billion share repurchase program. This increased the total repurchase authority to approximately $10 billion, adding to the remaining balance of its existing program.
- AMD repurchased $1.3 billion in stock in 2025. As of December 27, 2025, approximately $9.4 billion remained available for future stock repurchases under the program.
- In February 2022, AMD approved a new $8 billion share repurchase program, building on a $4 billion program announced in May 2021. Under the May 2021 program, approximately $3 billion of shares had been repurchased.
Share Issuance
- As part of the ZT Systems acquisition in March and October 2025, AMD issued 9.1 million shares of its common stock.
- In February 2026, AMD issued Meta Platforms a performance-based warrant for up to 160 million shares of AMD common stock, structured to vest as specific milestones associated with Instinct GPU shipments are achieved under their strategic partnership.
- AMD issued a warrant to OpenAI in October 2025 to purchase up to an aggregate of 160 million shares of AMD's common stock at an exercise price of $0.01 per share, contingent on certain GPU purchase milestones and stock performance.
Outbound Investments
- AMD completed the acquisition of ZT Systems in March and October 2025, which involved a total of $2.0 billion in cash (net of cash acquired) and the issuance of 9.1 million shares of common stock, aimed at strengthening AI infrastructure.
- In February 2026, AMD announced a strategic investment of $150 million in Nutanix common stock and up to $100 million for joint engineering initiatives, as part of a multi-year strategic partnership to develop an open and scalable platform for enterprise AI.
- AMD made several acquisitions to bolster its AI capabilities, including Nod.ai (October 2023) for open-source AI software, Silo AI (July 2024, for $665 million) for AI model development, and Mipsology (August 2023) for AI inference software.
Capital Expenditures
- AMD's capital expenditures for fiscal year 2025 reached $974 million, marking a peak in the last five years.
- The average capital expenditures for fiscal years 2021 to 2025 was $581.4 million. Capital expenditures increased annually from $301 million in 2021 to $974 million in 2025.
- Expected capital expenditures for the upcoming fiscal year (2026) are projected to be approximately $1,371.6 million, supporting increased investments in product development, AI solutions, and go-to-market strategies.
Latest Trefis Analyses
Trade Ideas
Select ideas related to AMD.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 04302026 | PLTR | Palantir Technologies | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.0% | 0.0% | 0.0% |
| 04102026 | ADSK | Autodesk | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 8.5% | 8.5% | 0.0% |
| 04102026 | BSY | Bentley Systems | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 4.2% | 4.2% | 0.0% |
| 04102026 | ENPH | Enphase Energy | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 5.7% | 5.7% | 0.0% |
| 04102026 | BL | BlackLine | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 3.2% | 3.2% | -3.0% |
| 12312021 | AMD | Advanced Micro Devices | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | -48.8% | -55.0% | -61.1% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 231.84 |
| Mkt Cap | 724.8 |
| Rev LTM | 49,125 |
| Op Inc LTM | 7,879 |
| FCF LTM | 10,538 |
| FCF 3Y Avg | 8,160 |
| CFO LTM | 12,132 |
| CFO 3Y Avg | 12,119 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 30.1% |
| Rev Chg 3Y Avg | 15.9% |
| Rev Chg Q | 25.8% |
| QoQ Delta Rev Chg LTM | 6.0% |
| Op Inc Chg LTM | 70.6% |
| Op Inc Chg 3Y Avg | 54.8% |
| Op Mgn LTM | 21.0% |
| Op Mgn 3Y Avg | 17.1% |
| QoQ Delta Op Mgn LTM | 1.3% |
| CFO/Rev LTM | 29.0% |
| CFO/Rev 3Y Avg | 29.0% |
| FCF/Rev LTM | 25.5% |
| FCF/Rev 3Y Avg | 24.8% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 724.8 |
| P/S | 21.2 |
| P/Op Inc | 102.3 |
| P/EBIT | 41.2 |
| P/E | 49.9 |
| P/CFO | 65.2 |
| Total Yield | 1.4% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 2.1% |
| D/E | 0.0 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 35.8% |
| 3M Rtn | 104.3% |
| 6M Rtn | 99.3% |
| 12M Rtn | 165.0% |
| 3Y Rtn | 315.6% |
| 1M Excs Rtn | 30.9% |
| 3M Excs Rtn | 95.2% |
| 6M Excs Rtn | 86.2% |
| 12M Excs Rtn | 132.4% |
| 3Y Excs Rtn | 289.4% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Data Center | 12,579 | 6,496 | 6,043 | 3,694 | |
| Client | 7,054 | 4,651 | 6,201 | 6,887 | |
| Embedded | 3,557 | 5,321 | 4,552 | 246 | |
| Gaming | 2,595 | 6,212 | 6,805 | 5,607 | |
| Computing and Graphics | 6,432 | ||||
| Enterprise, Embedded and Semi-Custom | 3,331 | ||||
| Total | 25,785 | 22,680 | 23,601 | 16,434 | 9,763 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Data Center | 3,482 | 1,267 | 1,848 | 991 | |
| Embedded | 1,421 | 2,628 | 2,252 | 44 | |
| Client and Gaming | 1,187 | ||||
| All Other | -4,190 | -4,419 | -4,979 | -409 | -288 |
| Client | -46 | 1,190 | 2,088 | ||
| Gaming | 971 | 953 | 934 | ||
| Computing and Graphics | 1,266 | ||||
| Enterprise, Embedded and Semi-Custom | 391 | ||||
| Total | 1,900 | 401 | 1,264 | 3,648 | 1,369 |
Price Behavior
| Market Price | $503.89 | |
| Market Cap ($ Bil) | 819.8 | |
| First Trading Date | 03/21/1983 | |
| Distance from 52W High | 0.0% | |
| 50 Days | 200 Days | |
| DMA Price | $309.40 | $232.53 |
| DMA Trend | up | up |
| Distance from DMA | 62.9% | 116.7% |
| 3M | 1YR | |
| Volatility | 73.3% | 65.1% |
| Downside Capture | 212.93 | 248.91 |
| Upside Capture | 464.51 | 351.18 |
| Correlation (SPY) | 59.8% | 51.0% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.92 | 2.10 | 2.56 | 2.51 | 2.28 | 2.12 |
| Up Beta | 0.72 | 0.90 | 1.59 | 1.98 | 1.40 | 2.05 |
| Down Beta | -2.07 | 2.78 | 1.96 | 2.58 | 2.52 | 1.81 |
| Up Capture | 411% | 473% | 487% | 440% | 872% | 3965% |
| Bmk +ve Days | 15 | 22 | 31 | 66 | 141 | 428 |
| Stock +ve Days | 19 | 29 | 36 | 68 | 141 | 393 |
| Down Capture | -496% | 109% | 227% | 198% | 162% | 113% |
| Bmk -ve Days | 4 | 18 | 30 | 56 | 108 | 321 |
| Stock -ve Days | 3 | 14 | 28 | 57 | 110 | 358 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with AMD | |
|---|---|---|---|---|
| AMD | 370.6% | 65.0% | 2.65 | - |
| Sector ETF (XLK) | 62.7% | 20.7% | 2.25 | 64.4% |
| Equity (SPY) | 30.3% | 12.0% | 1.91 | 50.7% |
| Gold (GLD) | 36.8% | 26.8% | 1.14 | 20.6% |
| Commodities (DBC) | 41.2% | 18.7% | 1.71 | -5.3% |
| Real Estate (VNQ) | 16.3% | 13.1% | 0.89 | 5.5% |
| Bitcoin (BTCUSD) | -32.5% | 41.9% | -0.83 | 35.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with AMD | |
|---|---|---|---|---|
| AMD | 47.4% | 55.1% | 0.91 | - |
| Sector ETF (XLK) | 23.5% | 24.8% | 0.83 | 72.7% |
| Equity (SPY) | 14.3% | 17.0% | 0.66 | 64.2% |
| Gold (GLD) | 18.8% | 18.0% | 0.85 | 13.8% |
| Commodities (DBC) | 10.1% | 19.4% | 0.41 | 9.1% |
| Real Estate (VNQ) | 3.9% | 18.8% | 0.11 | 32.2% |
| Bitcoin (BTCUSD) | 12.0% | 55.3% | 0.42 | 29.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with AMD | |
|---|---|---|---|---|
| AMD | 63.5% | 56.8% | 1.10 | - |
| Sector ETF (XLK) | 25.5% | 24.4% | 0.94 | 63.5% |
| Equity (SPY) | 15.6% | 17.9% | 0.75 | 55.6% |
| Gold (GLD) | 13.0% | 16.0% | 0.67 | 9.3% |
| Commodities (DBC) | 7.5% | 17.9% | 0.34 | 14.1% |
| Real Estate (VNQ) | 5.4% | 20.7% | 0.23 | 29.3% |
| Bitcoin (BTCUSD) | 66.8% | 66.9% | 1.06 | 17.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/06/2026 | 10-Q |
| 12/31/2025 | 02/04/2026 | 10-K |
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 08/06/2025 | 10-Q |
| 03/31/2025 | 05/07/2025 | 10-Q |
| 12/31/2024 | 02/05/2025 | 10-K |
| 09/30/2024 | 10/30/2024 | 10-Q |
| 06/30/2024 | 07/31/2024 | 10-Q |
| 03/31/2024 | 05/01/2024 | 10-Q |
| 12/31/2023 | 01/31/2024 | 10-K |
| 09/30/2023 | 11/01/2023 | 10-Q |
| 06/30/2023 | 08/02/2023 | 10-Q |
| 03/31/2023 | 05/03/2023 | 10-Q |
| 12/31/2022 | 02/27/2023 | 10-K |
| 09/30/2022 | 11/02/2022 | 10-Q |
| 06/30/2022 | 08/03/2022 | 10-Q |
Recent Forward Guidance [BETA]
Latest: Q1 2026 Earnings Reported 5/5/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | 10.90 Bil | 11.20 Bil | 11.50 Bil | 14.3% | Higher New | Guidance: 9.80 Bil for Q1 2026 | |
| Q2 2026 Non-GAAP Gross Margin | 56.0% | 1.8% | 1.0% | Higher New | Guidance: 55.0% for Q1 2026 | ||
Prior: Q4 2025 Earnings Reported 2/3/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | 9.50 Bil | 9.80 Bil | 10.10 Bil | 2.1% | Higher New | Guidance: 9.60 Bil for Q4 2025 | |
| Q1 2026 Non-GAAP Gross Margin | 55.0% | 0.9% | 0.5% | Higher New | Guidance: 54.5% for Q4 2025 | ||
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Norrod, Forrest Eugene | EVP & GM DESG | Direct | Sell | 5212026 | 431.40 | 19,487 | 8,406,784 | 140,002,483 | Form |
| 2 | Papermaster, Mark D | Chief Technology Officer & EVP | Direct | Sell | 5192026 | 433.79 | 6,000 | 2,602,740 | 535,161,084 | Form |
| 3 | Su, Lisa T | Chair, President & CEO | Direct | Sell | 5152026 | 445.51 | 125,000 | 55,688,359 | 1,346,276,778 | Form |
| 4 | Grasby, Paul Darren | EVP & CSO | Direct | Sell | 5112026 | 444.39 | 24,376 | 10,832,451 | 46,759,605 | Form |
| 5 | Papermaster, Mark D | Chief Technology Officer & EVP | Direct | Sell | 4282026 | 350.00 | 31,320 | 10,962,000 | 432,612,950 | Form |
AMD Trade Sentinel
MARKET WEIGHT (Score 5-6)
CONVICTION RATIONALE
AMD scores a 6 (Market Weight) because while the company's execution is excellent and it benefits from a widening moat and a powerful secular AI tailwind, the current valuation reflects much of this success. The resulting risk/reward skew is symmetric to slightly negative, where a potential miss or a sector-wide multiple compression presents a downside risk roughly equal to the upside potential. The position is a 'hold' as the fundamentals are strong, but the entry point is not compelling enough for an overweight rating.
STOCK ARCHETYPE
Type C: 'Secular Cyclical' OpportunityPrimary classification is 'Secular Cyclical' (70%) as AMD operates in the inherently cyclical semiconductor industry but is propelled by the powerful, long-term secular trend of AI and data center expansion. A secondary 'High-Beta Compounder' (30%) classification is warranted because the market is pricing it on the durability of its high-growth Data Center segment, which is structurally re-rating the company's profitability and valuation.
INVESTMENT THESIS
The investment thesis centers on AMD's structural transformation from a PC/Gaming-centric company to a Data Center powerhouse. This is driven by the synergistic growth of its EPYC server CPUs, which continue to take significant share from Intel, and its Instinct AI accelerators (MI300 series), which are emerging as the primary viable alternative to Nvidia for AI workloads.
- Data Center revenue grew 57% YoY to $5.8 billion in Q1 2026, becoming 56% of total company sales.
- Server CPU revenue share reached a record 46.2% in Q1 2026, confirming sustained momentum against Intel.
- Management guided Q2 2026 server CPU revenue to grow over 70% YoY, indicating accelerating demand.
- Announced major customer wins and expanded partnerships with Microsoft, Oracle, Meta, and OpenAI for Instinct GPUs and EPYC CPUs.
PRIMARY RISK
The primary risk to the thesis is AMD's inability to fully capitalize on AI demand due to its subordinate position in the supply chain for critical components. Nvidia has reportedly secured a dominant share of TSMC's advanced CoWoS packaging capacity and SK Hynix's HBM supply through 2026. This creates a structural bottleneck that could cap AMD's Instinct GPU production volumes, irrespective of the competitiveness of its products or the strength of market demand.
- Competitive analysis grades AMD's 'Infrastructure' as 'Worse vs Nvidia' due to Nvidia securing a dominant share (>50%) of critical TSMC CoWoS capacity and HBM supply.
- A J.P. Morgan report noted TSMC's 3nm capacity would hit its limit before 2026, creating a potential supply gap for over two years.
- Risk Factor analysis identifies 'TSMC Advanced Node & CoWoS Capacity Constraint' as a high probability, high impact risk for the next 6-9 months.
| KPI | Threshold | Rationale |
|---|---|---|
| Data Center Revenue Growth (YoY) | >+50% YoY | This is the primary metric confirming the core thesis. Sustained growth above this level validates the AI accelerator ramp and continued EPYC share gains, justifying the premium valuation. |
| Company-Level Non-GAAP Gross Margin | Sustained >55% | This demonstrates the positive financial impact of the mix shift to higher-margin Data Center products. Margin expansion is a critical component of the EPS growth story. |
| Forward Revenue Guidance (QoQ Growth) | >5% Sequential Growth | Strong sequential guidance signals that momentum in the core Data Center growth engine is accelerating, not peaking, and provides confidence in the durability of the growth narrative. |
AI Revenue Ramp vs. Supply Chain Reality
BULL VIEW
Data Center revenue accelerating >50% YoY confirms strong MI300 GPU adoption and continued EPYC CPU share gains from Intel, justifying the premium valuation.
CORE TENSION
Can AMD's Data Center growth, fueled by AI demand, overcome its subordinate supply chain position to Nvidia, or will manufacturing constraints cap the upside?
PREVAILING SENTIMENT
Bulls are currently winning. Data Center revenue grew 57% YoY to $5.8B in Q1 2026, and server CPU revenue share hit a record 46.2%.
BEAR VIEW
Nvidia's priority access to TSMC's CoWoS packaging and HBM memory will structurally bottleneck MI300 production, capping revenue and market share gains regardless of demand.
| Timeline | Event & Metric To Watch |
|---|---|
Early August 2026 | FY26 Q2 Earnings Call Watch: Management commentary on full-year AI accelerator revenue forecast and any mention of 'supply constraints'. This tests the core bear thesis directly. |
June 2-5, 2026 | Computex 2026 Conference Watch: Performance benchmarks of Nvidia's Blackwell and Intel's Gaudi 3. Watch for any key hyperscaler customer exclusively endorsing a competitor's architecture. |
Late October / Early November 2026 | FY26 Q3 Earnings Call Watch: Data Center Revenue Growth. Must exceed the Q1 2026 baseline of 57% YoY to maintain the 'accelerating' narrative. |
Anytime (Next 6 Months) | US Commerce Dept. Action on Chip Controls Watch: Any press release from the Bureau of Industry and Security (BIS) lowering performance thresholds for export licenses or adding Chinese cloud providers to the Entity List. |
| Date | Event | Stock Impact |
|---|---|---|
Dec 17, 2025 | Broader Market Sell-Off Details: AMD shares dropped amid a wider market downturn affecting high-valuation technology stocks, with no specific company news driving the decline. | Stock plummeted -5.3% $209.17 -> $198.11 |
Jan 14, 2026 | US Shifts AI Chip Export Policy Details: US Commerce Department shifted its export license review policy for AI chips like the MI325X to China from 'presumption of denial' to 'case-by-case'. | Modest 1.2% gain $220.97 -> $223.60 |
Feb 3, 2026 | Q4 2025 Earnings Report Details: Reported record Q4 Data Center revenue of $5.4B (+39% YoY) and record full-year 2025 revenue of $34.6B. Stock fell on possible 'sell the news' reaction. | Stock crashed -17.3% $242.11 -> $200.19 |
May 5, 2026 | Q1 2026 Earnings & Guidance Details: Reported blowout Data Center revenue of $5.8B (+57% YoY) and guided Q2 revenue to ~$11.2B, well above consensus, signaling accelerating AI demand. | Stock surged +18.6% $355.26 -> $421.39 |
Position Sizing
4%-6%
NORMAL
Stock is in an Explosive volatility regime (5.2x S&P) with Spiking near-term fear. While fundamentals are strong, Neutral sentiment and high valuation cap conviction. Size is capped to manage drawdowns.
Diversification Alternatives
NVDA
INDUSTRYThe dominant market leader (#1 vs AMD's #2) with a deep software moat (CUDA) and priority access to the supply chain, mitigating the primary risk facing AMD.
SNPS
SECTORA software-based duopoly that provides essential tools for the entire semiconductor industry. It profits from the AI design 'arms race' without taking on single-company execution risk.
AMD is re-rating from a cyclical PC & Gaming component supplier to a structural grower, driven by its transformation into a primary enabler of Data Center and AI infrastructure.
Filter all news through the lens of the Data Center AI-driven re-rating thesis.
Data Center revenue growth >+50% YoY; Server CPU revenue share gains (per Mercury Research); named hyperscaler wins for Instinct MI300/MI450 GPUs; evidence of ROCm software adoption by developers.
Slowing Data Center growth below guidance; Server CPU share loss to Intel; delays in MI450 ramp; major cloud providers announcing in-house AI silicon, reducing reliance on AMD.
Quarterly fluctuations in PC or Gaming segments — this is the legacy business and not the core of the re-rating thesis; short-term channel inventory adjustments; single-product benchmark wins/losses against competitors that don't translate to market share shifts.
Repricing Catalyst
The primary catalyst is the market's recognition of AMD's Instinct GPUs (MI300 series, upcoming MI450) as a viable high-performance alternative to Nvidia for AI training and inference workloads. This is evidenced by accelerating Data Center revenue, which grew 57% YoY to $5.8 billion in Q1 2026, becoming the largest segment, and management's guidance for server CPU revenue to grow over 70% YoY in Q2 2026.
Data Center (EPYC CPUs & Instinct AI GPUs)
$23.2B TTM (56% of Total) · 70% MarginWhat It Is
EPYC server CPUs (5th Gen 'Turin'); Instinct AI GPU Accelerators (MI350 series, upcoming MI450); Adaptive SoCs and FPGAs for networking.
Who Pays & How
Hyperscalers (e.g., Microsoft Azure, Oracle Cloud) and enterprises pay for EPYC's core density and total cost of ownership advantage for cloud computing, and for Instinct's performance and memory capacity for AI workloads. Design-in creates a multi-year platform lock-in.
Competition
Client Computing (Ryzen CPUs)
$11.6B TTM (28% of Total) · 50% MarginWhat It Is
Ryzen CPUs for desktop and notebook PCs; Ryzen AI processors with integrated NPUs.
Who Pays & How
PC OEMs (e.g., Dell, HP, Lenovo) pay on a per-CPU basis. Consumers and businesses choose Ryzen for its competitive performance and efficiency, particularly in laptops.
Competition
Gaming (Radeon GPUs & Semi-Custom Console Chips)
$2.9B TTM (7% of Total) · 45% MarginWhat It Is
Radeon GPUs for desktop and notebook PCs; Semi-custom SoCs for game consoles (Sony PlayStation 5, Microsoft Xbox Series X/S).
Who Pays & How
PC gamers and OEMs buy Radeon GPUs. Sony and Microsoft pay for custom-designed SoCs that form the heart of their consoles, locking them into a multi-year (~7 year) console generation cycle.
Competition
Embedded
$3.5B TTM (9% of Total) · 60% MarginWhat It Is
Embedded CPUs and Adaptive SoCs/FPGAs (from Xilinx acquisition) for automotive, industrial, networking, and healthcare markets.
Who Pays & How
Automotive Tier-1s, industrial automation companies, and networking equipment providers pay for long-lifecycle, highly reliable processors. Design wins create very strong, decade-plus lock-in.
Competition
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.