Advanced Micro Devices Inc. (NASDAQ: AMD) stock price rose almost 5x from $18 in 2018 end to around $86 currently, primarily due to favorable changes in its sales and P/S multiple. During this period, the company witnessed a stellar 233% rise in revenues, and combined with a higher P/S multiple, the company’s stock price has rallied despite a 61% rise in the outstanding share count. Further, over the same period, the S&P 500 returned around 60%, 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 364% Since 2018, we break down the factors behind this move.
(A) AMD’s Total Revenue has grown 233% from $6.5 billion in FY 2018 to $21.6 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 even higher at $21.6 billion on an LTM basis.
- AMD is an American semiconductor company, that develops computer processors and related technologies for business and consumer markets worldwide.
- AMD’s largest segment is the computing and graphics segment, which brought in $9.33 billion as of FY ’21, making up around 57% of the company’s total sales.
- For details about AMD’s operating income and comparison to peers, see Advanced Micro Devices (AMD) Operating Income Comparison
- Advanced Micro Devices Stock Has Jumped More Than 5x Since Late 2018: Here’s Why
- Down Almost 8% Last Month, What’s Next For AMD Stock?
- Forecast Of The Day: AMD’s Enterprise, Embedded & Semi-Custom Revenue
- With Bitcoin At $43,000, Check Out These Crypto Stocks
- Here’s What Makes Advanced Micro Devices Stock A Strong Bet
- Company Of The Day: AMD
(B) Revenue per share (RPS) increased 107% from $6.53 in 2018 to $13.52 currently
- AMD’s revenue rose from $6.5 billion in 2018 to $21.6 billion currently, while the outstanding share count rose from 1 billion in 2018 to around 1.6 million currently.
- Due to this, RPS has jumped from $6.53 in FY ’18 to $13.52 currently.
(C) Price-To-Sales (P/S) multiple for AMD rose strongly from 4.6x in 2018 to 15.4x by 2020 end, but has pulled back to 6.3x currently, still almost 1.4x higher than its 2018 level
- AMD’s P/S multiple rose strongly to around 15.4x 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 6.3x.
- For additional details about the company stock returns and comparison to peers, see Advanced Micro Devices (AMD) Stock Return Comparison.
|S&P 500 Return||-2%||-15%||80%|
|Trefis Multi-Strategy Portfolio||-3%||-16%||235%|
 Month-to-date and year-to-date as of 8/30/2022
 Cumulative total returns since the end of 2016