Advanced Micro Devices Stock Has Jumped More Than 5x Since Late 2018: Here’s Why
Advanced Micro Devices Inc. (NASDAQ: AMD) stock price rose more than 5.5x from $18 in 2018 end to around $102 currently, primarily due to favorable changes in its sales and P/S multiple. During this period, the company witnessed a stellar 192% rise in revenues, and combined with a higher P/S multiple, the company’s stock price has rallied despite a rise in the outstanding share count. Further, over the same period, the S&P 500 returned around 65%, meaning that AMD stock managed to substantially outperform the index since 2018-end.
In our interactive dashboard, Why Advanced Micro Devices Stock Moved: AMD Stock Has Gained 455% Since 2018, we break down the factors behind this move.
(A) AMD’s Total Revenue has grown 192% from $6.5 billion in FY 2018 to $18.9 billion on an LTM basis
- AMD’s total revenue has risen consistently from $6.5 billion in FY ’18 to $16.4 billion in FY ’21, and currently stands higher at $18.9 billion on an LTM basis.
- AMD is an American multinational semiconductor company, that develops computer processors and related technologies for business and consumer markets.
- AMD’s largest segment is the computing and graphics segment, bringing in $9.33 billion as of FY ’21, making up around 57% of the company’s total sales.
- For additional details about AMD’s revenues and comparison to peers, see Advanced Micro Devices (AMD) Revenue Comparison
- How Will AMD’s AI Business Fare In Q1?
- Digital Infrastructure Stocks Are Up 7% This Year, Will Generative AI Tailwinds Continue To Drive Them Higher?
- Up 130% In The Last 12 Months, Will AI Power AMD’s Rally Post Q4 Results?
- AMD Takes The Fight To Nvidia With Latest AI Chip Launch. Is The Stock A Buy At $116?
- Is AMD Stock A Buy At $120 As It Doubles Down On AI-Focused GPUs?
- Is AMD The Dark Horse Of The AI Silicon Race?
(B) Revenue per share (RPS) increased 106% from $6.53 in 2018 to $13.45 currently
- AMD’s revenue rose from $6.5 billion in 2018 to $18.9 billion currently, while the outstanding share count rose from 1 billion in 2018 to around 1.4 million currently.
- Due to this, RPS has jumped from $6.53 in FY ’18 to $13.45 currently.
(C) Price-To-Sales (P/S) multiple for AMD rose strongly from 4.6x in 2018 to 15.2x by 2020 end, but has pulled back to 7.6x currently, still around 1.65x higher than its 2018 level
- AMD’s P/S multiple rose strongly to around 15.2x by late 2020, on the back of rising investor expectations surrounding increased semiconductor sales.
- However, due to the current geopolitical tensions and increased economic uncertainty weighing on the broader markets, the P/S multiple has pulled back, currently standing at around 7.6x.
- For additional details about the company stock returns and comparison to peers, see Advanced Micro Devices (AMD) Stock Return Comparison.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
| Returns | May 2022 MTD [1] |
2022 YTD [1] |
2017-22 Total [2] |
| AMD Return | 13% | -33% | 750% |
| S&P 500 Return | -5% | -18% | 76% |
| Trefis Multi-Strategy Portfolio | -7% | -23% | 204% |
[1] Month-to-date and year-to-date as of 5/18/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates