Advanced Micro Devices, Inc. Overview
Advanced Micro Devices, Inc. is a fabless designer of high-performance and adaptive computing silicon and, increasingly, of complete rack-scale AI systems. It is the only company that simultaneously holds a credible x86 server CPU franchise, a merchant data-center GPU franchise, a leading semi-custom console franchise, and the industry's second-largest FPGA/adaptive-SoC franchise. Over the five years to FY2025 the company transformed from a challenger PC and console silicon vendor into a data-center-led platform company: Data Center revenue rose from a minority contributor to 48% of FY2025 revenue and 58% of Q2 2026 revenue. The strategic centre of gravity is now the AMD Instinct accelerator line, the ROCm open software stack and the Helios rack-scale platform, underwritten by multi-gigawatt binding commitments from OpenAI (6 GW) and Anthropic (up to 2 GW). AMD's structural advantages are its TSMC-anchored process leadership, chiplet and advanced-packaging IP, an open-ecosystem software posture positioned against a proprietary incumbent, and a balance sheet in net cash. Its principal vulnerabilities are software-ecosystem depth relative to CUDA, customer concentration, export-control exposure to China, and a valuation that discounts near-flawless execution of the MI450/Helios ramp.
FY2025 headcount is per the FY2025 10-K. FY2021–FY2024 figures are as compiled by market-data aggregators from AMD's annual disclosures and should be treated as approximate; the FY2022 step-change reflects the February 2022 Xilinx acquisition, and the FY2025 increase reflects the ZT Systems design-team acquisition plus aggressive AI engineering hiring, which AMD cites as the principal driver of the 25% FY2025 increase in R&D expense.
The company's own characterisation
In its FY2025 Form 10-K, AMD describes itself as a driver of innovation in high-performance and AI computing whose technology powers experiences across cloud and AI infrastructure, embedded systems, AI PCs and gaming. It positions its portfolio as a full-stack proposition spanning AI-optimised CPUs, GPUs, networking silicon and software. For data centres it supplies AI accelerators, server CPUs, GPUs, data processing units, AI network interface cards and FPGAs, and it now also supplies data-centre rack-scale platform designs. In client computing it supplies CPUs, APUs and chipsets, and it notes that it was the first company to integrate a dedicated neural processing unit on the same system-on-chip as an x86 CPU. Its embedded portfolio spans CPUs, APUs, FPGAs, system-on-modules and adaptive SoCs for automotive, industrial, healthcare, storage and networking markets. AMD emphasises that it develops the accompanying software stacks — development tools, compilers and drivers — and maintains an open AI software stack across frameworks and models.
AMD's stated strategy, in its own framing, rests on the belief that AI will become pervasive across cloud, edge and endpoint devices, and that the breadth of its compute engines, intellectual property and software enablement uniquely positions it to be an end-to-end AI leader. It identifies accelerating Data Center growth as the key 2025 priority and describes an annual cadence for Instinct GPU leadership products.
Independent characterisation
AMD is best understood as three businesses of very different economic character bolted to a single R&D and IP engine:
A hyperscale silicon franchise (Data Center). This is a design-win business with extreme customer concentration, multi-year qualification cycles, and — since 2024 — a rapidly changing commercial architecture. Historically AMD sold chips to OEMs and ODMs who sold systems to hyperscalers. Following the ZT Systems acquisition, AMD now sells reference rack designs and, in the Helios era, integrated rack-scale solutions, moving up the value chain toward Nvidia's system-level model. The economics are shifting from component gross margin (high) toward system-level content (larger dollar TAM, structurally lower percentage margin, higher working-capital intensity). The Q2 2026 balance sheet shows the signature of this shift: accounts payable more than doubled sequentially to 5,359 and property and equipment rose to 3,439 from 2,312 at year-end.
A share-gain franchise (Client and Gaming). Client is a merchant CPU business competing against a single structurally impaired incumbent. AMD's revenue growth here has been driven far more by mix and pricing than by unit volume expansion in a flat-to-declining PC TAM: FY2025 Client revenue rose 51% on a 31% unit increase and a 15% ASP increase. Gaming has two distinct components — a contractual, console-cycle-dependent semi-custom business (Sony PlayStation 5, Microsoft Xbox Series S/X, and the Valve Steam Machine) with predictable decay and step-function renewal, and a merchant discrete GPU business where AMD is a structural number two.
An industrial-cycle franchise (Embedded). Overwhelmingly the legacy Xilinx business. Long product lifecycles, high gross margins, sticky design wins in aerospace/defence, test and measurement and communications, but exposed to distributor inventory cycles — as the FY2025 3% revenue decline demonstrates.
Revenue model
AMD's revenue is almost entirely product revenue from the sale of semiconductors and, increasingly, semiconductor-based systems. There is no material subscription revenue. Three secondary revenue mechanisms exist:
Non-recurring engineering (NRE) fees: charged to semi-custom and custom-silicon customers for design and development services, recognised alongside subsequent product sales.
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IP licensing, which AMD states it may undertake "from time to time." Effective Q1 2025 licensing gains were reclassified against Marketing, General and Administrative expense because the amounts were immaterial — a useful indication that licensing is not a meaningful profit centre.
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Rack-scale systems revenue, a new and growing category post-ZT, where the unit of sale is a populated rack rather than a chip.
Value-chain position
AMD is fabless. It occupies the design, IP and system-architecture layer and outsources every physical manufacturing step:
Wafer fabrication: TSMC for all HPC, FPGA and adaptive-SoC wafers, and for all microprocessor and GPU products at 7nm and below; GLOBALFOUNDRIES for microprocessor and GPU products at nodes larger than 7nm, specifically 12nm and 14nm, under a wafer supply agreement providing minimum annual capacity allocation and set pricing through 2026; TSMC, United Microelectronics Corporation and Samsung Electronics for programmable logic devices.
Assembly, test, mark and packaging (ATMP): two joint ventures with affiliates of Tongfu Microelectronics Co., Ltd., which provide the majority of ATMP services, plus Siliconware Precision Industries (SPIL) and King Yuan Electronics (KYEC).
Board-level graphics manufacturing: outsourced to third-party manufacturers and add-in-board partners.
This model means AMD's cost of goods is largely a pass-through of foundry and packaging pricing, and its principal operating leverage comes from ASP and mix rather than from manufacturing efficiency. It also means AMD carries no fab capex burden — FY2025 capital expenditure was 974, or 2.8% of revenue, versus the tens of billions spent annually by integrated device manufacturers.
Customer types and routes to market
| Segment | Customer types | Route to market |
|---|---|---|
| Data Center | Hyperscale cloud providers and hyperscale private data centres; OEMs; ODMs; system integrators; independent distributors | Direct sales force; OEM/ODM channel; distributors; increasingly direct rack-scale supply |
| Client and Gaming | PC OEMs; independent distributors; ODMs manufacturing motherboards; add-in-board manufacturers; independent game-console and portable-gaming-device manufacturers; contract manufacturers for AMD-branded graphics cards | OEM partnerships; distribution; AIB partners; direct semi-custom contracts |
| Embedded | Aerospace and defence, automotive, industrial, vision and healthcare, communications infrastructure, test and measurement, emulation and prototyping, audio/video/broadcast, data centre | Direct sales plus a network of distributors, OEM partners, value-added resellers and integrated solution vendors (notably for Alveo) |
AMD explicitly warns in its risk factors that it depends on a small number of customers for a substantial portion of its business and expects this to continue. It also notes the emerging structural risk that its own hyperscale customers are internally developing competing data-centre microprocessors and accelerators.
End markets served
Cloud and hyperscale AI infrastructure; enterprise IT and on-premise servers; supercomputing and exascale HPC; sovereign AI; consumer and commercial PCs (desktop, notebook, workstation, handheld); gaming consoles and cloud gaming; professional visualisation and content creation; aerospace and defence; automotive (infotainment, ADAS-adjacent adaptive compute); industrial automation and robotics; medical imaging and healthcare; wired and wireless communications infrastructure; test and measurement; broadcast and professional AV; capital-markets low-latency networking (Solarflare).
Strategy
Stated strategy
AMD's strategy as set out in the FY2025 Form 10-K rests on a single conviction: that AI is shaping the next era of computing, that its full potential will be realised only when it becomes pervasive across cloud, edge and endpoint devices, and that AMD's combination of compute engines, IP, software enablement and expertise positions it to lead that era. AMD frames its portfolio breadth — supercomputing, cloud, edge, embedded and end devices — as a unique opportunity to be the end-to-end AI leader.
Four operational themes carry that strategy:
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Data Center acceleration as the priority. AMD identifies accelerating Data Center growth as its key 2025 priority, delivered through an annual Instinct cadence beginning with MI350 in 2025, the 5th Gen EPYC family, and the Helios rack-scale preview.
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Full-stack rather than component-level competition. AMD's stated position is that AI systems require not just powerful chips but full-stack innovation across compute, networking, systems architecture and software, and that its combination of CPUs, GPUs, adaptive SoCs, networking, software and systems integration uniquely enables this.
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Open ecosystem as differentiation. Continued investment in ROCm and the open ecosystem, explicitly positioned against a proprietary competitor's software moat, plus active participation in open-source initiatives and industry consortia.
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Custom-ready silicon. Investment in a custom-ready chiplet platform and the AMD Infinity Fabric switch to defend and extend AMD's position as a custom-design silicon provider of choice — a direct response to hyperscaler internal ASIC programmes.
Medium-term financial targets
| Target | Level |
|---|---|
| Company revenue CAGR | Greater than 35% |
| Non-GAAP operating margin | Greater than 35% |
| Non-GAAP EPS | Greater than 20 USD |
| Gross margin range | 55–58% |
| Free cash flow margin | Approximately 25% |
| Data Center revenue CAGR | Greater than 60% |
| Data centre AI revenue CAGR | Greater than 80% |
| Embedded and Client and Gaming revenue CAGR | Greater than 10% |
| Server CPU revenue market share | Greater than 50% |
| Client revenue market share | Greater than 40% by 2030 |
| Adaptive revenue market share | Greater than 70% |
| Addressable market | Greater than 1 trillion USD by 2030; data-centre TAM approximately 1 trillion USD by 2030 |
At its Financial Analyst Day in New York on 11 November 2025, AMD set out a long-term model covering the next three to five years:
For calibration: the >20 USD non-GAAP EPS target sits against FY2025 non-GAAP EPS of 4.17, implying roughly 5x growth, and above the top of the sell-side range at the time — Bank of America's pre-event 2030 estimate was 15–18 USD. Achieving a >35% non-GAAP operating margin requires expansion from 22% in FY2025 and 27% in Q2 2026.
Near-term guidance
| Period | Revenue guidance | Non-GAAP gross margin guidance | Notes |
|---|---|---|---|
| Q1 2026 (given 3 Feb 2026) | Approximately 9,800 ± 300 | Approximately 55% | Included approximately 100 of MI308 sales to China; midpoint implied ~32% YoY growth. Actual: 10,253 |
| Q2 2026 (per third-party reporting) | Approximately 11,200 ± 300 | not captured | Actual: 11,536 |
| Q3 2026 (given 4 Aug 2026) | Approximately 13,000 ± 300 | Approximately 56% | Midpoint implies ~41% YoY growth and ~13% sequential growth |
Management commentary accompanying Q2 2026 stated an expectation that Data Center sales will accelerate in the second half of 2026, driving stronger overall revenue growth and continued earnings expansion, and that AMD sees a clear path to the Financial Analyst Day targets.
Strategic initiatives announced in the last 24 months
| Date | Counterparty | Terms |
|---|---|---|
| 6 Oct 2025 | OpenAI OpCo, LLC | Product purchase agreement to deploy 6 GW of AMD GPUs across multiple Instinct generations. Binding commitment at signing to purchase the initial 1 GW of MI450 Series, deployment from H2 2026. Concurrent warrant for up to 160 million shares at 0.01 USD, vesting in tranches on purchase milestones, AMD share-price targets and stock performance, exercisable through 5 Oct 2030, with demand and piggyback registration rights. OpenAI designated a "core strategic compute partner" with bilateral technical roadmap exchange |
| 22 Jul 2026 | Anthropic | Strategic partnership to deploy up to 2 GW of Instinct MI450 Series GPUs (MI455X) in Helios racks with EPYC "Venice" CPUs, Pensando networking and ROCm software, first gigawatt from H1 2027. Builds on Anthropic's existing MI355X use. AMD committed a strategic equity investment of up to 5 billion USD in Anthropic, tied to deployment milestones; valuation terms not disclosed. Multi-year engineering collaboration to use Claude to optimise Instinct workloads and accelerate ROCm development |
Anchor demand agreements
Transformation and platform investments
Rack-scale transformation: The ZT Systems acquisition (closed March 2025) and the subsequent divestiture of its manufacturing arm to Sanmina (October 2025) constitute a deliberate "buy the design capability, sell the metal-bending" strategy. AMD expected the transaction to be accretive on a non-GAAP basis by the end of 2025.
Silicon photonics and co-packaged optics: Enosemi acquisition (May 2025) to scale photonic integrated circuit and CPO capability for next-generation AI systems.
Software portability: Brium (June 2025) for compiler and model-execution technology enabling AI software to run on non-Nvidia GPUs without code rewrites — a direct assault on CUDA lock-in. ROCm.ai released H1 2026.
Inference economics: Untether AI team (June 2025); MK1 (November 2025), whose Flywheel and comprehension-engine technologies are reported to process over one trillion tokens per day and have been folded into the AMD Artificial Intelligence Group; MEXT (June 2026) for AI-driven predictive memory optimisation — notably timely given the industry-wide memory shortage AMD flags in its risk factors.
Custom silicon: Investment in a custom-ready chiplet platform and the Infinity Fabric switch.
Cost and capital programmes
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2024 Restructuring Plan: 186 of severance and non-cash impairment, completed; no further restructuring charges in FY2025 or H1 2026.
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Buyback: 1,316 repurchased in FY2025, 862 in FY2024, 221 in H1 2026. The remaining authorised amount was not captured in this research pass.
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Debt: 2,441 raised in FY2025 through debt and commercial paper issuance, against 950 of repayment.
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Dividends: none, and AMD states in its forward-looking disclosures that it expects not to pay dividends in the near future.
Products & Services
Data Center segment
| Attribute | Detail |
|---|---|
| Description | x86-64 server processors for high-performance computing, enterprise IT, supercomputing and large data centres |
| Current generation | 5th Generation EPYC ("Turin"), launched 2024–2025; 6th Generation EPYC ("Venice") introduced H1 2026 |
| Positioning | Leadership performance and efficiency across agentic AI, general-purpose and enterprise workloads |
| Target customer | Hyperscale cloud providers, enterprise IT, HPC centres, OEMs and ODMs |
| Ecosystem scale | More than 1,350 public EPYC cloud instances available globally as of Q3 2025, up roughly 50% year over year; more than 160 new EPYC-powered instances launched by hyperscalers in Q3 2025 alone |
| Pricing model | Per-unit sale; list pricing not disclosed by AMD. Third-party reporting places EPYC list prices broadly in the 2,000–10,000+ USD range depending on SKU |
| Notable 2026 wins | AWS instances powered by 5th Gen EPYC delivering the highest x86 performance in the AWS cloud; two new EPYC-powered VM series on Microsoft Azure |
| Product | Architecture / generation | Description and target use | Timing |
|---|---|---|---|
| Instinct MI200 Series | CDNA 2 | Exascale HPC and early AI training; powers the Frontier supercomputer | 2,021 |
| Instinct MI300X / MI300A | CDNA 3 | First high-volume merchant AI training and inference accelerator (MI300X, discrete GPU) and APU variant (MI300A) for HPC; MI300A powers El Capitan | Dec 2023 |
| Instinct MI325X | CDNA 3 refresh | Memory-capacity-optimised inference | 2,024 |
| Instinct MI350 Series (MI350X, MI355X) | CDNA 4 | Large-scale AI training and inference; the principal FY2025 ramp product | 2,025 |
| Instinct MI350P | CDNA 4 derivative | Designed to bring AI acceleration to existing infrastructure with leadership token economics | H1 2026 |
| Instinct MI400 Series (MI455X, MI430X) | Next-generation | MI455X for large-scale AI training and inference with leadership compute, memory capacity and bandwidth; MI430X positioned as the most advanced accelerator for HPC and sovereign AI workloads | H1 2026 |
| Instinct MI440X | Next-generation | Enterprise AI | Announced CES, January 2026 |
| Instinct MI450 Series | Next-generation | The product underpinning the OpenAI 6 GW and Anthropic 2 GW commitments; MI455X is a member of this family | First 1 GW OpenAI deployment from H2 2026; Anthropic first gigawatt from H1 2027 |
| Instinct MI500 | Future | Disclosed on the Financial Analyst Day roadmap | Beyond 2026 |
| Product | Description | Target customer |
|---|---|---|
| Pensando DPUs (including "Salina") | Offload data-centre infrastructure services from the host CPU; used by large IaaS cloud providers to accelerate hosted virtualised and bare-metal workloads | Hyperscale IaaS providers; Microsoft Azure is a disclosed user, broadening Pensando DPU deployment for Azure networking services |
| Pensando "Pollara" 400 AI NIC | High-speed connectivity across GPU clusters for scale-out AI networking | AI cluster operators |
| Pensando "Vulcano" AI NIC | Next-generation AI scale-out NIC | AI cluster operators |
| Solarflare adapters and Onload | Ultra-low-latency hardware adapters and user-space networking libraries | Capital markets and FinTech |
Server CPUs — AMD EPYC
Data Center GPUs and AI accelerators — AMD Instinct
Rack-scale platform — AMD Helios
Helios is AMD's integrated rack-scale AI solution combining Instinct GPUs, EPYC CPUs, Pensando networking and ROCm software. AMD describes it as the blueprint for yotta-scale AI infrastructure and, at launch, as the world's most powerful AI server rack, with leadership inference tokens per dollar. Disclosed adopters and deployers include Anthropic, Cirrascale, HUMAIN, Meta, Microsoft, OpenAI, Oracle, Tensorwave and Vultr. HPE announced it will be among the first system providers to adopt Helios and will deliver the Herder supercomputer powered by next-generation Instinct MI430X GPUs and EPYC "Venice" CPUs. AMD has also introduced a Helios design supporting Meta's Open Rack Wide specification.
Visual cloud GPUs — AMD Radeon PRO V Series
Data-centre GPUs for remote visualisation workloads including Desktop-as-a-Service, Workstation-as-a-Service and cloud gaming.
Networking — AMD Pensando and AMD Solarflare
Data-centre FPGAs, adaptive SoCs and accelerator cards
Virtex, Kintex, Artix and Spartan FPGA families; Zynq and Versal adaptive SoCs; Alveo accelerator cards for accelerating data-centre workloads at the edge or in the cloud.
Software — AMD ROCm
ROCm is AMD's open AI and HPC software platform. In 2025 AMD introduced optimisations and expanded framework and library support to improve generative-AI workload performance. In H1 2026 AMD released ROCm.ai, described as an AI-native developer experience for building, deploying and optimising across AMD platforms. Zyphra's ZAYA1 is cited by AMD as the first large-scale mixture-of-experts model trained entirely on Instinct MI300X GPUs with Pensando networking and ROCm.
Client and Gaming segment — Client business
| Product line | Description | Launch/latest |
|---|---|---|
| Ryzen 9000 Series | "Zen 5" desktop processors across a broad range of capabilities and price points for Socket AM5 | 2024–2025 |
| Ryzen 9000X3D (9950X3D, 9900X3D) | 2nd-generation AMD 3D V-Cache technology for leadership gaming and content-creation performance | 2,025 |
| Ryzen 7 9800X3D / 9850X3D | 9850X3D announced January 2026 and marketed as the fastest gaming processor | Jan 2026 |
| Ryzen 7700X3D | Additional 3D V-Cache SKU; Socket AM5 platform support extended through 2029 | H1 2026 |
| Ryzen Threadripper 9000 Series | Professional workstation CPUs with increased core counts, expanded memory bandwidth and updated platform capabilities | 2,025 |
| Ryzen G Series (AM4) | Integrated-graphics processors extending the longevity of the Socket AM4 platform | 2,025 |
| Chipsets | Full suite supporting Ryzen and Ryzen Threadripper platforms from entry level to professional workstation | Ongoing |
| Product line | Description | Launch/latest |
|---|---|---|
| Ryzen AI 300 Series | "Zen 5" plus next-generation NPU and RDNA 3.5 graphics; supports Microsoft Copilot+ PCs | 2,025 |
| Ryzen AI 400 Series | Next-generation AI PC processors | Jan 2026 |
| Ryzen AI Max / Max+ (392, 388) | Maximum-GPU-configuration mobile parts extended to wider price points | 2025–2026 |
| Ryzen AI Halo | Reference/developer platform with up to 128 GB of memory for large local AI models; Ryzen AI Halo systems purpose-built for building, testing and running agentic AI workflows locally, with ROCm support | Jan 2026 platform; systems released H1 2026 |
| Ryzen 8000 Series mobile | "Zen 4" with AMD's first-generation NPU | 2,024 |
| Ryzen 10 / 100 Series mobile | "Zen 2" and "Zen 3+" mainstream consumer and commercial parts | Ongoing |
| Ryzen Z1 Series | Handheld gaming processors | 2,023 |
| Ryzen Z2 Series | Higher efficiency and improved graphics for portable gaming, including the Asus ROG Xbox Ally | 2,025 |
Desktop CPUs and APUs
Notebook CPUs and APUs
Commercial CPUs — AMD Ryzen PRO
Ryzen AI PRO 300 Series (business notebooks and mobile workstations, with enterprise security and manageability); Ryzen AI 400 PRO Series (announced January 2026); Ryzen PRO 200 Series mobile; Ryzen PRO 9000 Series, expanded in H1 2026 to bring 3D V-Cache technology to enterprise workstations for the first time; Ryzen PRO 8000G Series desktops; Ryzen Threadripper PRO for premium workstations.
Client and Gaming segment — Gaming business
| Product line | Description | Named customers / flagship |
|---|---|---|
| Semi-custom SoCs | Tailored, customer-specific CPU+GPU+multimedia SoCs, co-engineered with the customer; revenue comprises NRE fees plus per-unit product sales | Sony PlayStation 5; Microsoft Xbox Series S and Series X; Valve Steam Machine PC (revealed 2025) |
| Radeon RX 9000 Series | RDNA 4 discrete desktop and notebook GPUs; increased AI performance, new ray-tracing capability and improved performance per watt | Flagship consumer graphics line, 2025 |
| Radeon RX 9070 GRE | Global availability expanded in H1 2026 | Mainstream ray-tracing tier |
| Radeon PRO | Professional workstation graphics for CAD, 3D rendering, design and manufacturing, broadcast and animation | Professional visualisation |
| Radeon AI PRO R9000 Series | Workstation cards for local AI inference and creative workloads | 2,025 |
| AMD Software: Adrenalin Edition | Driver and feature software for all Radeon graphics products | Continuously updated |
| AMD FidelityFX Super Resolution (FSR) "Redstone" | Machine-learning suite comprising FSR Upscaling, Frame Generation, Ray Regeneration and Radiance Caching for Radeon RX 9000 cards | 2025–2026 |
Embedded segment
| Product line | Description | Launch |
|---|---|---|
| EPYC Embedded 9005 Series | High-core-count embedded server class for networking, storage and edge servers with extended lifecycles | 2,025 |
| EPYC Embedded 4005 Series | Mid-range embedded server class | 2,025 |
| EPYC Embedded 2005 Series | Enhanced performance, efficiency and high-speed connectivity for networking, storage and industrial applications | 2025, highlighted again at CES 2026 |
| Ryzen Embedded 9000 Series | Performance-per-watt and low latency for automation systems and machine vision | 2,025 |
| Ryzen AI Embedded P100 Series | AI-capable embedded x86 | Jan 2026 |
| Ryzen AI Embedded X100 Series | Integrates CPU, GPU and AI acceleration for robotics, industrial automation and intelligent embedded systems | Jan 2026 (announced); introduced H1 2026 |
| Ryzen Embedded V-Series and R-Series | Legacy APU and CPU embedded families | Ongoing |
| Embedded Radeon graphics | Embedded graphics brand | Ongoing |
| Family | Description |
|---|---|
| UltraScale+, UltraScale, 7 Series | Core hardware-customisable FPGA families |
| Virtex 6/7, Virtex UltraScale+ | Highest-performance FPGA tier |
| Kintex 7, Kintex UltraScale, Kintex UltraScale+ | Mid-range FPGA tier |
| Artix 7, Artix UltraScale+ | Cost-optimised FPGA tier |
| Spartan 6, Spartan 7 | Entry-level FPGA tier |
| Zynq 7000, Zynq UltraScale+ MPSoC | Adaptive SoCs combining FPGA fabric with a heterogeneous processing system |
| Zynq UltraScale+ RFSoC, Zynq RFSoC DFE | Industry-first RFSoC architecture with integrated RF data converters for wireless, radar and cable access |
| Versal AI Core, AI Edge, Prime, Premium, HBM | Software-programmable adaptive SoCs combining a processing system, programmable logic, AI Engines and DSP Engines |
| Versal AI Edge Series Gen 2 | Including space-grade variants for extreme space environments (announced CES 2026) |
| Versal RF Series | Compute performance for aerospace and defence; space-grade variants announced CES 2026 |
| Versal Premium Series Gen 2 | First adaptive compute devices supporting next-generation CXL and PCIe connectivity; a Memory on Package variant launched H1 2026 for test and measurement, professional video editing, communications, and aerospace and defence |
Embedded CPUs and APUs
FPGAs and adaptive SoCs
System-on-Modules and developer platforms
AMD Kria SOMs, including the Kria K24 SOM (high determinism and low latency for electric drives and motor controllers) and the Kria KD240 Drives Starter Kit. In H1 2026 AMD announced Kria AI solutions, comprising Kria AI system-on-modules and the Kria AI Robotics Developer Platform for physical AI systems. AMD offers development kits for all FPGA and adaptive SoC families, bundling hardware, tools, IP and reference designs.
Design software
AMD Vivado Design Suite (FPGA and adaptive SoC hardware design); AMD Vitis unified software platform (embedded software and accelerated application development); AMD Vitis AI (AI software development and deployment on FPGAs and adaptive SoCs).
Pricing model across the portfolio
AMD does not disclose product-level pricing in its filings. Sales are made primarily pursuant to purchase orders for current delivery or agreements covering purchases over a period of time, generally operating on the basis of customer-provided forecasts without minimum purchase commitments. AMD warrants that products conform to specification and are free from defects for one year, with up to three-year limited warranties on certain product types. Distributor agreements typically include price protection, limited return rights and stock rotation provisions. Semi-custom arrangements combine NRE fees with per-unit product pricing.
Financial Narrative
Income statement
FY2024 and FY2025 line items are taken directly from AMD's Q4 2025 earnings release condensed statements of operations. FY2021–FY2023 revenue, gross profit, operating income, net income and EPS are from AMD's respective full-year earnings releases and 10-K filings and are reliable.
Non-GAAP income statement and margins
FY2024 and FY2025 non-GAAP figures are exact from the Q4 2025 release. FY2022 and FY2023 non-GAAP figures are as stated (rounded) in the respective full-year press releases.
Growth and CAGRs
Four-year revenue CAGR FY2021→FY2025: 20.5%. Two-year revenue CAGR FY2023→FY2025: 23.6%. Four-year diluted-EPS CAGR FY2021→FY2025: 0.8% — a stark illustration of how much of AMD's headline growth over the period was absorbed by Xilinx purchase accounting and by the share count rising from 1,229 million to 1,636 million diluted.
Balance sheet
FY2024 and FY2025 figures are from AMD's condensed consolidated balance sheets in the Q4 2025 release. FY2022–FY2023 total assets, total liabilities, equity, working capital and tangible book value are as compiled from AMD's filings by a market-data provider; goodwill for FY2021–FY2023 and total debt for FY2022–FY2023 are from AMD's XBRL data.
Mid-2026 position (Q2 2026 balance sheet, 27 June 2026): total assets 84,464; cash and equivalents 5,086; short-term investments 8,025; cash plus STI 13,111; inventories 8,468; accounts receivable 7,281; property and equipment, net 3,439; goodwill 25,470; acquisition-related intangibles, net 15,635; accounts payable 5,359; total debt 3,226; total stockholders' equity 67,224. Note the retirement of the entire 7,079 treasury-stock balance during H1 2026, which reduced additional paid-in capital from 63,365 to 61,373 and retained earnings from 6,699 to 5,909 while leaving total equity higher.
Cash flow
FY2024 and FY2025 figures are exact from AMD's condensed consolidated statements of cash flows. FY2021–FY2023 operating cash flow, capex and buyback figures are as reported in AMD's respective annual filings; where AMD's current "continuing operations" presentation did not exist, the totals shown are the then-reported consolidated figures.
H1 2026: operating cash flow from continuing operations 5,321; capex 1,197; free cash flow 4,124 (19% FCF margin); share repurchases 221; no dividends.
Ratio analysis
ROE, ROA and asset turnover are computed on average balances. ROIC is computed as operating income less a 13% normalised tax (AMD's own non-GAAP tax rate for 2025) divided by average invested capital defined as equity plus total debt less cash and short-term investments. FY2022 ratios on average balances are marked n/m because the Xilinx close mid-year distorts the average.
Commentary on trends, inflections and drivers
Revenue. The five-year series contains three distinct regimes. FY2021 was the peak of the pandemic-era PC and console cycle combined with the early EPYC share ramp. FY2022 grew 43.6% almost entirely on the inorganic addition of Xilinx (Embedded revenue rose from 246 to 4,552) and continued Data Center strength, masking a 10% decline in Client. FY2023 was the trough: revenue fell 3.9% as Client collapsed 25% under a PC inventory correction and Gaming fell 8.7%, offset only partly by the beginning of the Instinct MI300 ramp. FY2024 reaccelerated to 13.7% growth with Data Center nearly doubling, but Embedded fell 33.2% on distributor destocking and Gaming fell 58.2% on console-cycle decay. FY2025's 34.3% growth was the first year in which every major driver worked simultaneously: Data Center up 32.2%, Client up 50.8% on both units and ASP, Gaming up 50.7% on semi-custom recovery and RDNA 4, with only Embedded modestly negative. The 2026 half-year run-rate of 21,789 (up 44% year over year) with Q3 guidance of approximately 13,000 implies a materially steeper trajectory again, driven overwhelmingly by Data Center.
Gross margin. GAAP gross margin traces a shallow U: 48.2% in FY2021, compressing to 45.1% in FY2022 purely because Xilinx purchase accounting introduced roughly 1.4–1.5 billion of annual acquisition-intangible amortisation into cost of sales, then recovering to 49.5% by FY2025 as that amortisation became a smaller percentage of a larger revenue base and as mix shifted to Data Center and premium Client. Non-GAAP gross margin tells a cleaner story and is notably flat to slightly down — 52% in FY2022, 50% in FY2023, 53% in FY2024, 52% in FY2025 — because rising Instinct volume carries below-corporate-average margin. The FY2025 non-GAAP figure was additionally depressed by approximately 440 of net MI308 inventory and related charges arising from the April 2025 export controls. Q2 2026 non-GAAP gross margin of 56% and Q3 2026 guidance of approximately 56% represent genuine expansion, but management has flagged an industry-wide memory shortage with rising memory prices as a live input-cost risk.
Operating expense and R&D. This is where the equity story has been most expensive. R&D rose from 2,845 in FY2021 to 8,091 in FY2025 — a 2.8x increase against a 2.1x revenue increase — peaking at 25.9% of revenue in FY2023. AMD attributes the FY2025 increase of 1,635 (25%) primarily to higher employee-related costs from increased headcount. Marketing, general and administrative expense grew 51.5% in FY2025 to 4,144, materially faster than revenue, which merits scrutiny; some of this reflects the ZT integration and the scaling of a direct systems-selling motion. Stock-based compensation reached 1,638 in FY2025 (4.7% of revenue) and is annualising above 1,980 in 2026 based on H1 run-rate.
Below the line. FY2025 net income of 4,335 substantially overstates operating improvement. Three items account for the gap between 94% operating-income growth and 164% net-income growth: an 853 release of reserves for uncertain tax positions following IRS approval of dual-consolidated-loss relief in Q2 2025; 365 of net gains on long-term investments; and a 66 income contribution from the discontinued ZT manufacturing operations. The full-year income tax line was a net benefit of 103 on pre-tax income of 4,140. The same pattern recurs in 2026: Q2 2026 net income of 2,297 includes 483 of gains on long-term investments. Analysts should model AMD on non-GAAP operating income or Adjusted EBITDA rather than GAAP net income.
Cash generation. Free cash flow inflected sharply, from 2,405 in FY2024 to 5,519 in FY2025 (16% FCF margin), and H1 2026 delivered 4,124 (19%). Operating cash flow conversion has been held back by working capital: inventories rose 2,189 in FY2025 and a further 548 in H1 2026, reaching 8,468. Days inventory outstanding of 165 in FY2025 is high and rising. Some of this is deliberate pre-build for the Helios ramp and defensive memory procurement, but it is the single balance-sheet line most worth monitoring. Days sales outstanding improved markedly from 87.6 to 66.6.
Capital structure. AMD is in a strong net cash position of 7,330 at FY2025 year-end and 9,885 at Q2 2026. Total debt of 3,222 against Adjusted EBITDA of 8,521 gives leverage of 0.38x gross and negative net. Interest coverage of 28.2x is comfortable. Debt/equity of 0.051 is nominal. Equity is dominated by 63,365 of additional paid-in capital reflecting the all-stock Xilinx transaction; retained earnings were only 6,699 at FY2025 year-end. Book value is heavily intangible: goodwill and acquisition intangibles of 41,831 represent 54% of FY2025 total assets and 66% of equity, which is the principal impairment exposure on the balance sheet.
Returns. Even after the FY2025 recovery, ROE of 7.2% and ROIC of roughly 5.9% remain below what most investors would consider a semiconductor cost of capital. This is a direct arithmetic consequence of the Xilinx purchase price sitting in the denominator. The bull case is that the same denominator now supports a Data Center business generating 3,702 of segment operating income in a single half-year; if the Financial Analyst Day model is achieved, ROIC rises steeply. The bear observation is that four years after Xilinx, the transaction has not yet cleared its cost of capital on a returns basis.
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Segment revenue (USD Mn)
| Segment revenue (USD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Data Center | 3,694 | 6,043 | 6,496 | 12,579 | 16,635 |
Client and Gaming | 12,494 | 13,006 | 10,863 | 9,649 | 14,550 |
— of which Client | 6,887 | 6,201 | 4,651 | 7,054 | 10,640 |
— of which Gaming | 5,607 | 6,805 | 6,212 | 2,595 | 3,910 |
Embedded | 246 | 4,552 | 5,321 | 3,557 | 3,454 |
Total net revenue | 16,434 | 23,601 | 22,680 | 25,785 | 34,639 |
Segment operating income (USD Mn)
| Segment operating income (USD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Data Center | 991 | 1,848 | 1,267 | 3,482 | 3,603 |
Client and Gaming | 2,880 | 2,143 | 925 | 1,187 | 2,855 |
Embedded | 44 | 2,653 | 2,628 | 1,421 | 1,243 |
All Other | -267 | -5,380 | -4,419 | -4,190 | -4,007 |
Total operating income | 3,648 | 1,264 | 401 | 1,900 | 3,694 |
Segment operating margin (%)
| Segment operating margin (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Data Center | 26.8 | 30.6 | 19.5 | 27.7 | 21.7 |
Client and Gaming | 23.1 | 16.5 | 8.5 | 12.3 | 19.6 |
Embedded | 17.9 | 58.3 | 49.4 | 39.9 | 36.0 |
Total company (GAAP) | 22.2 | 5.4 | 1.8 | 7.4 | 10.7 |
Segment YoY revenue growth (%)
| Segment YoY revenue growth (%) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Data Center | 63.6 | 7.5 | 93.6 | 32.2 |
Client and Gaming | 4.1 | -16.5 | -11.2 | 50.8 |
— of which Client | -10.0 | -25.0 | 51.7 | 50.8 |
— of which Gaming | 21.4 | -8.7 | -58.2 | 50.7 |
Embedded | 1,750.4 | 16.9 | -33.2 | -2.9 |
Total | 43.6 | -3.9 | 13.7 | 34.3 |
Share of total revenue (%)
| Share of total revenue (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Data Center | 22.5 | 25.6 | 28.6 | 48.8 | 48.0 |
Client and Gaming | 76.0 | 55.1 | 47.9 | 37.4 | 42.0 |
Embedded | 1.5 | 19.3 | 23.5 | 13.8 | 10.0 |
Revenue by Segment
| Segment (USD Mn) | Q1 2026 | Q2 2026 | H1 2026 | H1 2025 |
|---|---|---|---|---|
Data Center revenue | 5,775 | 6,718 | 12,493 | 6,914 |
Client revenue | 2,885 | 3,062 | 5,947 | 4,793 |
Gaming revenue | 720 | 779 | 1,499 | 1,769 |
Client and Gaming revenue | 3,605 | 3,841 | 7,446 | 6,562 |
Embedded revenue | 873 | 977 | 1,850 | 1,647 |
Total net revenue | 10,253 | 11,536 | 21,789 | 15,123 |
Data Center operating income | 1,599 | 2,103 | 3,702 | 777 |
Client and Gaming operating income | 575 | 582 | 1,157 | 1,263 |
Embedded operating income | 338 | 386 | 724 | 603 |
All Other operating income | -1,036 | -1,081 | -2,117 | -1,971 |
Total operating income | 1,476 | 1,990 | 3,466 | 672 |
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View Subscription PlansIncome statement (USD Mn)
| Income statement (USD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net revenue | 16,434 | 23,601 | 22,680 | 25,785 | 34,639 |
Total cost of sales | 8,505 | 12,954 | 12,222 | 13,060 | 17,487 |
Gross profit | 7,929 | 10,647 | 10,458 | 12,725 | 17,152 |
Research and development | 2,845 | 5,005 | 5,872 | 6,456 | 8,091 |
Marketing, general and administrative | 1,448 | 2,336 | 2,352 | 2,735 | 4,144 |
Amortization of acquisition-related intangibles (opex) | 0 | 1,448 | 1,080 | 1,448 | 1,223 |
Restructuring charges | 0 | 0 | 0 | 186 | 0 |
Total operating expenses | 4,281 | 9,383 | 10,057 | 10,825 | 13,458 |
Operating income | 3,648 | 1,264 | 401 | 1,900 | 3,694 |
Interest expense | -34 | -88 | -106 | -92 | -131 |
Other income (expense), net | 55 | 8 | additional | 181 | 577 |
Income before taxes and equity income | 3,669 | 1,184 | 295 | 1,989 | 4,140 |
Income tax provision (benefit) | 513 | -122 | -346 | 381 | -103 |
Equity income in investee | 6 | 14 | 27 | 33 | 26 |
Net income | 3,162 | 1,320 | 854 | 1,641 | 4,335 |
Basic EPS (USD) | 2.61 | 0.85 | 0.53 | 1.01 | 2.67 |
Diluted EPS (USD) | 2.57 | 0.84 | 0.53 | 1.00 | 2.65 |
Diluted shares (M) | 1,229 | 1,571 | 1,625 | 1,637 | 1,636 |
Dividends per share (USD) | 0 | 0 | 0 | 0 | 0 |
Margin Analysis (%) and Per-Share Data
| Non-GAAP measures (USD Mn unless %) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Non-GAAP gross profit | 12,271 | 11,340 | 13,759 | 18,165 |
Non-GAAP gross margin (%) | 52 | 50 | 53 | 52 |
Non-GAAP operating income | 6,300 | 4,900 | 6,138 | 7,768 |
Non-GAAP operating margin (%) | 27 | 22 | 24 | 22 |
Non-GAAP net income | 5,500 | 4,300 | 5,420 | 6,831 |
Non-GAAP diluted EPS (USD) | 3.50 | 2.65 | 3.31 | 4.17 |
Adjusted EBITDA (company-defined) | — | — | 6,810 | 8,521 |
Margin (%)
| Margin (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
GAAP gross margin | 48.2 | 45.1 | 46.1 | 49.4 | 49.5 |
GAAP operating margin | 22.2 | 5.4 | 1.8 | 7.4 | 10.7 |
GAAP net margin | 19.2 | 5.6 | 3.8 | 6.4 | 12.5 |
Non-GAAP gross margin | — | 52 | 50 | 53 | 52 |
Non-GAAP operating margin | — | 27 | 22 | 24 | 22 |
Adjusted EBITDA margin | — | — | — | 26.4 | 24.6 |
R&D as % of revenue | 17.3 | 21.2 | 25.9 | 25.0 | 23.4 |
Growth metric (%)
| Growth metric (%) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Revenue growth YoY | 43.6 | -3.9 | 13.7 | 34.3 |
Gross profit growth YoY | 34.3 | -1.8 | 21.7 | 34.8 |
Operating income growth YoY | -65.4 | -68.3 | 373.8 | 94.4 |
Net income growth YoY | -58.3 | -35.3 | 92.2 | 164.2 |
Diluted EPS growth YoY | -67.3 | -36.9 | 88.7 | 165.0 |
Balance Sheet
| Balance sheet (USD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Cash and cash equivalents | n/v | n/v | n/v | 3,787 | 5,539 |
Short-term investments | n/v | n/v | n/v | 1,345 | 5,013 |
Cash and short-term investments | 3,608 | 5,857 | 5,773 | 5,132 | 10,552 |
Accounts receivable, net | n/v | n/v | n/v | 6,192 | 6,315 |
Inventories | n/v | n/v | n/v | 5,734 | 7,920 |
Total current assets | n/v | n/v | n/v | 19,049 | 26,947 |
Property and equipment, net | n/v | n/v | n/v | 1,802 | 2,312 |
Goodwill | 289 | 24,177 | 24,262 | 24,839 | 25,126 |
Goodwill plus acquisition intangibles, net | 289 | 48,295 | 45,625 | 43,769 | 41,831 |
Total assets | n/v | 67,580 | 67,885 | 69,226 | 76,926 |
Accounts payable | n/v | n/v | n/v | 2,466 | 2,929 |
Total current liabilities | n/v | n/v | n/v | 7,281 | 9,455 |
Short-term debt (current portion of LT debt) | 0 | 0 | 751 | 0 | 874 |
Long-term debt | 313 | 2,467 | 1,717 | 1,721 | 2,348 |
Total debt (company definition) | 313 | 2,467 | 2,468 | 1,721 | 3,222 |
Net debt (total debt less cash and STI) | -3,295 | -3,390 | -3,305 | -3,411 | -7,330 |
Total liabilities | n/v | 12,830 | 11,993 | 11,658 | 13,927 |
Total stockholders' equity | n/v | 54,750 | 55,892 | 57,568 | 62,999 |
Working capital | n/v | 8,650 | 10,079 | 11,768 | 17,492 |
Tangible book value | n/v | 6,455 | 10,267 | 13,799 | 21,168 |
Cash flow (USD Mn)
| Cash flow (USD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net cash from operating activities (continuing ops) | n/v | n/v | n/v | 3,041 | 6,493 |
Net cash from operating activities (total, incl. discontinued) | 3,521 | 3,565 | 1,667 | 3,041 | 7,709 |
Purchases of property and equipment (capex) | 301 | 450 | 546 | 636 | 974 |
Free cash flow (company definition) | n/v | n/v | n/v | 2,405 | 5,519 |
Acquisitions, net of cash acquired | n/v | n/v | n/v | 548 | 1,760 |
Proceeds from divestiture, net of cash divested | 0 | 0 | 0 | 0 | 1,356 |
Repurchases of common stock | 1,762 | 3,702 | 985 | 862 | 1,316 |
Stock repurchases for tax withholding on employee equity | n/v | n/v | n/v | 728 | 607 |
Proceeds from debt and commercial paper issuance | n/v | n/v | n/v | 0 | 2,441 |
Repayment of debt and commercial paper | n/v | n/v | n/v | 750 | 950 |
Dividends paid | 0 | 0 | 0 | 0 | 0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Return on equity (%) | n/m | 1.5 | 2.9 | 7.2 |
Return on assets (%) | n/m | 1.3 | 2.4 | 5.9 |
Return on invested capital, approx. (%) | n/m | 0.6 | 2.9 | 5.9 |
Current ratio (x) | n/v | n/v | 2.62 | 2.85 |
Total debt / equity (x) | 0.045 | 0.044 | 0.030 | 0.051 |
Net debt / Adjusted EBITDA (x) | — | — | -0.50 | -0.86 |
Interest coverage, operating income / interest expense (x) | 14.4 | 3.8 | 20.7 | 28.2 |
Asset turnover (x) | n/m | 0.33 | 0.38 | 0.47 |
Days sales outstanding | n/v | n/v | 87.6 | 66.6 |
Days inventory outstanding | n/v | n/v | 160.3 | 165.3 |
Days payable outstanding | n/v | n/v | 68.9 | 61.1 |
Cash conversion cycle (days) | n/v | n/v | 179.0 | 170.8 |
Revenue by geography (USD Mn)
| Revenue by geography (USD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
United States | 4,656 | 8,049 | 7,837 | 8,690 | 11,360 |
China (incl. Hong Kong) | 4,096 | 5,207 | 3,417 | 6,230 | 7,760 |
Taiwan | 2,091 | 2,369 | 1,841 | 3,300 | 5,190 |
Singapore | 1,389 | 1,380 | 2,231 | 3,610 | 4,280 |
Japan | 2,381 | 4,177 | 4,629 | 1,770 | — |
Europe | 1,249 | 1,773 | 2,030 | 1,630 | — |
Other countries | 572 | 646 | 695 | 555 | — |
Total net revenue | 16,434 | 23,601 | 22,680 | 25,785 | 34,639 |
Share of total revenue (%) — United States
| Share of total revenue (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
United States | 28.3 | 34.1 | 34.6 | 33.7 | 32.8 |
China (incl. Hong Kong) | 24.9 | 22.1 | 15.1 | 24.2 | 22.4 |
Taiwan | 12.7 | 10.0 | 8.1 | 12.8 | 15.0 |
Singapore | 8.5 | 5.8 | 9.8 | 14.0 | 12.4 |
Japan | 14.5 | 17.7 | 20.4 | 6.9 | — |
Europe | 7.6 | 7.5 | 8.9 | 6.3 | — |
International sales as % of total | 71.7 | 65.9 | 65.4 | 66.0 | 67.0 |
YoY growth (%)
| YoY growth (%) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
United States | 72.9 | -2.6 | 10.9 | 30.7 |
China (incl. Hong Kong) | 27.1 | -34.4 | 82.3 | 24.4 |
Taiwan | 13.3 | -22.3 | 79.3 | 57.1 |
Singapore | -0.6 | 61.7 | 61.8 | 18.5 |
Japan | 75.4 | 10.8 | -61.8 | — |
Europe | 42.0 | 14.5 | -19.7 | — |
Valuation Snapshot
| Metric | Value | As of |
|---|---|---|
Share price | 515.78 USD | 11 September 2026 close |
Intraday range that session | 501.35 – 521.06 USD | 12 September 2026 session |
Market capitalisation | Approximately 843 billion USD | 11 September 2026 |
Market capitalisation (alternative provider) | 850.67 billion USD | 9 September 2026 |
52-week range | 149.85 – 584.73 USD | September 2026 |
One-year market-capitalisation change | +246.20% | 9 September 2026 |
Average daily volume | Approximately 17.59 million shares | September 2026 |
Rank by market capitalisation globally | Approximately 19th | September 2026 |
Valuation Multiples
| Multiple | AMD (Sep 2026) | Basis |
|---|---|---|
Trailing P/E (x) | 129.24 | Price 515.78 against trailing twelve-month EPS |
Trailing twelve-month revenue (USD Bn) | 37.45 | Through the most recent reported period |
EV / Sales, trailing (x) | approximately 22 | EV of approximately 833 billion (843 market cap + 3.2 debt − 13.1 cash and STI) |
EV / Adjusted EBITDA, trailing (x) | approximately 72 | Trailing twelve-month Adjusted EBITDA of approximately 11,542, derived as FY2025 8,521 less H1 2025 3,040 plus H1 2026 6,061 |
Price / Book (x) | approximately 12.5 | Equity of 67,224 at 27 June 2026 |
Price / Tangible Book (x) | approximately 32 | Tangible equity of approximately 26,119 (67,224 less 41,105 of goodwill and intangibles) |
Trailing twelve-month net income (USD Bn) | 6.434 | Twelve months ended 30 June 2026, up 127% year over year |
Firm by Date
| Date | Firm | Action |
|---|---|---|
Nov 2025 | Goldman Sachs | Reaffirmed Neutral following the bullish Financial Analyst Day |
Feb 2026 | Evercore ISI, BofA Securities, Truist and others | Raised price targets following Q4 2025; average target approximately 289 USD |
Feb 2026 | Undisclosed | Sector Perform rating noted |
Feb 2026 | KeyBanc | Positive outlook |
Q2 2026 | Goldman Sachs; Bernstein | Both doubled price targets. Bernstein models more than 14 USD EPS in 2027 and describes approaching 20 USD in 2028 as plausible assuming the AI boom continues, against a TIKR consensus of approximately 13 USD normalised EPS for 2027 |
26 Aug 2026 | Raymond James (Simon Leopold) | Upgraded to Strong Buy from Outperform; target raised to 641 USD from 565, citing the strongest combination of earnings leverage, data-centre positioning and share growth, supported by 107% year-over-year Data Center growth |
Aug/Sep 2026 | 24/7 Wall St. | Target of 629 USD |
9 Sep 2026 | Piper Sandler | Initiated at Overweight |
Sep 2026 | Morningstar | Notes AMD is trading at a premium to its fair value estimate; observes AMD lags Nvidia but sees room in the AI market, while flagging that AMD must improve software capabilities |
Sep 2026 | Various | "Wall Street sees more than 50% upside" commentary; a bear-case scenario circulating at approximately 481 USD, essentially flat, hinging on the timing of the Helios ramp from Q4 2026 into Q1 2027 |
Capital Markets
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Dividends per share (USD) | 0 | 0 | 0 | 0 | 0 |
Dividends paid (USD Mn) | 0 | 0 | 0 | 0 | 0 |
Dividends & Capital Returns
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Repurchases of common stock (USD Mn) | 1,762 | 3,702 | 985 | 862 | 1,316 |
Stock repurchases for tax withholding on employee equity plans (USD Mn) | n/v | n/v | n/v | 728 | 607 |
Proceeds from employee equity plans (USD Mn) | n/v | n/v | n/v | 279 | 285 |
Credit Ratings
| Agency | Rating | Outlook | Date | Note |
|---|---|---|---|---|
S&P Global Ratings | A long-term issuer credit rating (upgraded from A-); short-term and commercial paper A-1 (upgraded from A-2) | Stable | 9 January 2025 | Upgrade cited strong growth prospects in x86 and AI-accelerated computing, expected continued x86 server CPU share gains, strong free operating cash flow, a solid balance sheet and careful financial policies |
Moody's Ratings | A2 long-term local-currency credit rating (upgraded from A3) | Stable | 20 June 2023 | Prior trajectory: Ba3 → Baa3 (September 2020) → Baa1 → A3 (February 2022, on Xilinx close) → A2 |
Fitch Ratings | Not identified in this research pass | — | — | AMD is not known to carry a public Fitch rating |
Balance Sheet (FY2023–Q2 2026)
| Metric | FY2023 | FY2024 | FY2025 | Q2 2026 |
|---|---|---|---|---|
Current portion of long-term debt, net (USD Mn) | 751 | 0 | 874 | 875 |
Long-term debt (USD Mn) | 1,717 | 1,721 | 2,348 | 2,351 |
Total debt (USD Mn) | 2,468 | 1,721 | 3,222 | 3,226 |
Cash and short-term investments (USD Mn) | 5,773 | 5,132 | 10,552 | 13,111 |
Net cash (USD Mn) | 3,305 | 3,411 | 7,330 | 9,885 |
Long-term operating lease liabilities (USD Mn) | n/v | 491 | 625 | 1,050 |
Analyst Conclusions
Management guidance
For Q3 2026, AMD guides to revenue of approximately 13,000 plus or minus 300 — a midpoint implying approximately 41% year-over-year growth and approximately 13% sequential growth — with non-GAAP gross margin of approximately 56%. Management has stated it expects Data Center sales to accelerate in the second half of 2026, driving stronger overall revenue growth and continued earnings expansion. Dr. Su has described AMD as entering the second half with strong momentum as EPYC demand accelerates, Instinct deployments scale and Helios begins to ramp, and has said AI is driving a significant expansion in compute demand across all of AMD's markets.
Against the November 2025 Financial Analyst Day framework — greater than 35% revenue CAGR, greater than 35% non-GAAP operating margin, greater than 20 USD non-GAAP EPS, greater than 60% Data Center CAGR, greater than 80% data-centre AI CAGR — management stated on the Q4 2025 call that it sees a clear path to the targets. On the Q1 2026 call, Dr. Su revised the server CPU TAM view upward to greater than 35% annual growth reaching over 120 billion USD by 2030, against the roughly 60 billion figure presented at the Analyst Day.
Consensus expectations
Implied full-year 2026 revenue, taking H1 actual of 21,789 plus Q3 guidance of approximately 13,000 and applying normal H2 seasonal strength, points to roughly 48,000–50,000 for FY2026, or 39–44% growth. Sell-side EPS expectations have moved sharply: TIKR consensus places AMD at approximately 13 USD in normalised EPS for 2027, while Bernstein models more than 14 USD in 2027 and describes approaching 20 USD in 2028 as plausible if the AI buildout continues. Raymond James, at a 641 USD target, and Piper Sandler, initiating at Overweight in September 2026, represent the current bullish end. The market is pricing AMD at approximately 129x trailing earnings and roughly 22x trailing sales, which requires the 2027–2028 numbers to be substantially correct.
Three bull-case arguments
1. The Data Center margin inflection has already happened and is not yet in the run-rate. Data Center segment operating income of 3,702 in H1 2026 exceeded the entire FY2025 figure of 3,603, with segment margin moving from 21.7% to 29.6%. This occurred before the MI450 and Helios revenue ramp, which begins with OpenAI's first gigawatt in H2 2026 and Anthropic's first gigawatt in H1 2027. Total-company non-GAAP operating margin has already moved from 22% in FY2025 to 25% in Q1 2026 and 27% in Q2 2026. The path from 27% to the greater-than-35% target is a mix-shift arithmetic problem, not a cost-cutting problem, and mix is moving in the right direction at pace.
2. Contracted demand of up to 8 GW gives revenue visibility no other Nvidia challenger has. OpenAI's binding commitment for the initial gigawatt of MI450, within a 6 GW multi-generation agreement running to 2030, plus Anthropic's up-to-2 GW agreement from H1 2027, plus a Helios adopter list including Meta, Microsoft, Oracle and HPE, converts AMD from a share-gain story into a backlog story. AMD has stated it expects tens of billions of revenue from the OpenAI relationship alone. Where the 2023–2024 AI narrative for AMD was speculative, the 2026–2028 narrative is contractual.
3. The x86 franchise is a self-funding annuity that the market underweights. AMD reached 46.2% of x86 server CPU revenue in Q1 2026 on 33.2% of units, 30.3% client unit share in Q2 2026 and a record 34.1% of total x86 units — every metric at an all-time high, against a competitor that lost money in FY2025, cannot meet Xeon demand, and has cut combined R&D and MG&A by 17%. Client revenue grew 51% in FY2025 on 31% more units at 15% higher ASPs. The greater-than-50% server revenue share target is only a few points away. This business alone generated the majority of AMD's operating income as recently as FY2024 and funds the AI investment.
Three bear-case arguments
1. The valuation prices the Financial Analyst Day case as fact, and the ramp has binary timing risk. At approximately 129x trailing earnings and roughly 72x trailing EV/EBITDA, AMD is discounting the greater-than-20 USD non-GAAP EPS scenario — roughly 5x FY2025's 4.17. Circulating bear scenarios place fair value near 481 USD, essentially flat, with the swing factor being whether the Helios ramp lands in Q4 2026 or slips to Q1 2027. AMD's own risk factors warn that increased frequency and complexity of product transitions heighten supply/demand management challenges and may produce unanticipated quality or production issues, and that customers may be unable to secure sufficient data-centre capacity or energy, with construction delays affecting demand timing. A one-quarter slip in a stock priced this way is a large drawdown.
2. Earnings quality is weak and dilution is real. FY2025 GAAP net income of 4,335 included an 853 tax reserve release, 365 of investment gains and 66 from discontinued operations, on a tax line that was a net benefit of 103. Q2 2026 net income of 2,297 included 483 of investment gains. Meanwhile non-GAAP operating margin has been flat to down over four years (27%, 22%, 24%, 22%), stock-based compensation reached 1,638 in FY2025 and is annualising near 2,000, diluted shares have risen from 1,229 million in FY2021 to 1,659 million, the 2026 proxy sought 65 million more plan shares, and the OpenAI warrant represents up to approximately 9.8% additional dilution. ROE of 7.2% and ROIC of roughly 5.9% remain below cost of capital four years after Xilinx. An investor is paying a hyper-growth multiple for a business that has not yet demonstrated it can convert growth into returns.
3. Structural competitive and policy exposures are worsening, not improving. Nvidia's FY2026 data-centre revenue of 197,300 is 11.9x AMD's total FY2025 Data Center revenue, and Nvidia has now partnered with and invested in Intel — a development AMD names in its own risk factors as potentially increasing competition and pricing pressure or foreclosing opportunities. Broadcom's AI semiconductor revenue is growing over 200% year over year serving hyperscalers who build their own accelerators, and AMD explicitly warns that its customers are internally developing competing products. On policy, 22.4% of FY2025 revenue was billed in China, the April 2025 MI308 controls produced approximately 800 of charges in a single quarter, and every leading-edge wafer AMD buys comes from Taiwan. Add an active industry-wide memory shortage with rising prices, and the margin bridge to greater than 35% runs through several variables AMD does not control.
Catalysts and monitorables — next twelve months
| Catalyst / monitorable | Timing | Why it matters |
|---|---|---|
| Q3 2026 results against approximately 13,000 guidance | Late October / early November 2026 | First quarter with meaningful Helios and MI450 contribution |
| OpenAI first-gigawatt MI450 deployment | H2 2026 | The single most important execution milestone; triggers the first warrant tranche |
| Q4 2026 and FY2026 results, plus FY2027 guidance | Early February 2027 | Will establish whether the greater-than-35% CAGR is on track |
| Non-GAAP gross margin trajectory versus the approximately 56% guide | Quarterly | Tests whether rack-scale mix and memory costs compress or expand margin |
| Non-GAAP operating margin progression from 27% toward 35% | Quarterly | The central question in the Analyst Day model |
| Inventory and days-inventory-outstanding | Quarterly | 8,468 at Q2 2026 and 165 days at FY2025; a build ahead of a ramp is healthy, a build during a ramp is not |
| Anthropic equity investment tranches and Helios deployment progress | From H1 2027, with milestones earlier | Tests the circular-financing structure |
| Warrant vesting disclosures and diluted share count | Quarterly | Quantifies the OpenAI dilution as it crystallises |
| MI308 licensing and China policy | Ongoing | 22.4% of revenue billed in China |
| Memory pricing and HBM supply | Ongoing | Directly determines accelerator gross margin |
| Mercury Research quarterly share data | Quarterly | Server CPU revenue share crossing 50% would validate a core Analyst Day target |
| Next-generation console announcements | 2026–2027 | Determines whether Gaming's decline reverses |
| Credit rating actions from S&P and Moody's | Ongoing | Current ratings predate the transformation |
| Additional hyperscaler Helios adoption, particularly AWS and Google | Ongoing | Their absence from the adopter list is the most telling gap |
| Nvidia Rubin platform ramp | FY2027 | Sets the performance bar AMD's MI450 must clear on tokens per dollar |
Analyst verdict
AMD in September 2026 is a genuinely transformed company being valued as though the transformation is complete. The operational evidence is real and independently verifiable: Data Center revenue more than doubled year over year in Q2 2026 to 6,718 and now represents 58% of the company; Data Center segment operating income of 3,702 in one half-year exceeded all of FY2025; free cash flow of 4,124 in H1 2026 at a 19% margin; x86 share at record highs on every measure with revenue share running thirteen points above unit share; and up to 8 GW of contracted multi-year demand from the two most important frontier-model developers outside the hyperscalers. Six quarters ago none of this existed. Management has beaten its own guidance in every recent quarter, has maintained an annual Instinct cadence through three generations, and has executed the ZT buy-and-carve-out with unusual capital discipline.
The difficulty is entirely one of price and of what has not yet improved. Four years after the 49-billion Xilinx acquisition, ROE is 7.2% and ROIC is approximately 5.9%. Non-GAAP operating margin has been flat to down across four fiscal years. GAAP earnings are materially flattered by tax releases and investment gains. Diluted share count has risen 35% since FY2021 before any effect of a warrant that could hand nearly 10% of the company to a customer. And the margin bridge from 27% to the promised 35-plus percent runs directly through memory prices AMD does not set, foundry pricing AMD does not set, export licences AMD does not grant, and data-centre power AMD does not build. At roughly 129x trailing earnings, the market has already granted AMD full credit for clearing all of it.
The honest assessment is that AMD has earned a substantial premium and has been handed one considerably larger than it has earned. The operational trajectory is among the most impressive in the industry and the contracted demand is genuine, but the stock has re-rated 246% in twelve months while non-GAAP operating margin has moved five points. That is a valuation expanding faster than the fundamentals underneath it. The position deserves respect rather than either dismissal or enthusiasm: the business is very likely to be materially larger and more profitable in 2028 than in 2026, and the share price may nonetheless deliver poor returns from here if the ramp slips a quarter, if memory costs bite, or if a single gigawatt commitment is deferred. The critical near-term test is whether Q3 and Q4 2026 deliver both the approximately 13,000-plus revenue and the approximately 56% gross margin simultaneously. Revenue without margin would confirm the bear thesis that rack-scale is a lower-quality business; both together would materially de-risk the Analyst Day model and justify a good deal of what the market has already paid.
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View Subscription PlansExecutive Leadership
Board of Directors
| Director | Age (at 2026 AGM) | Director since | Independent | Committees | Principal background |
|---|---|---|---|---|---|
Dr. Lisa T. Su — Chair, President and CEO | 56 | Oct 2014 (Chair since Feb 2022) | No | Chair of the Board | President and CEO since Oct 2014; joined AMD Jan 2012 as SVP/GM Global Business Units; previously SVP/GM Networking and Multimedia at Freescale Semiconductor; earlier VP of Semiconductor R&D at IBM and technical staff at Texas Instruments. BS, MS and PhD in Electrical Engineering, MIT. IEEE Fellow; member, National Academy of Engineering and American Academy of Arts and Sciences. Chair of the Semiconductor Industry Association board; Board Trustee, Mohamed bin Zayed University of Artificial Intelligence. Former director of Analog Devices (2012–2020) and Cisco Systems (2020–2023) |
Nora M. Denzel — Lead Independent Director | 63 | Mar 2014 (Lead Independent since Nov 2022) | Yes | Chair, Nominating and Corporate Governance; member, Innovation and Technology | Interim CEO of Outerwall (2015); senior executive roles at Intuit (2008–2012) and HP/HPE (2000–2006) including SVP/GM Software Global Business Unit; earlier Legato Systems and IBM. Current director of Gen Digital and Sony Group Corporation (since June 2025; recused from all AMD Board discussions involving Sony). MBA Santa Clara University; BS Computer Science, SUNY |
Michael P. Gregoire | 60 | Nov 2019 | Yes | Chair, Compensation and Leadership Resources; member, Innovation and Technology | Founding partner, Brighton Park Capital; Chairman and CEO of CA Technologies (2013–2018); President and CEO of Taleo (2005–2012); EVP at PeopleSoft; Executive Director at EDS. Former Chairman of Smartsheet (2019–2025) and director of ADP (2014–2019). BSc physics and computing, Wilfrid Laurier; MBA California Coast University |
Joseph A. Householder | 70 | Sep 2014 | Yes | Chair, Audit and Finance; member, Nominating and Corporate Governance. Designated audit committee financial expert | President and COO of Sempra Energy (2018–2020); EVP and CFO of Sempra (2011–2016); Chief Accounting Officer (2007–2012); previously a partner at PricewaterhouseCoopers and senior roles at Unocal. NACD Directorship Certified with a CERT Certificate in Cyber-Risk Oversight. BS business administration, USC; JD Loyola Law School |
John W. Marren | 63 | Feb 2017 | Yes | Member, Audit and Finance | Vice Chairman, North America of Temasek since Nov 2017; previously Senior Partner and Head of Technology Investments at TPG Capital (2000–2015); Managing Director at Morgan Stanley (1996–2000), Co-Head of Technology Investment Banking; Managing Director and Senior Semiconductor Research Analyst at Alex. Brown (1992–1996); seven years at VLSI Technology and Vitesse Semiconductor. BS electrical engineering, UC Santa Barbara |
KC McClure | 61 | Jan 2026 | Yes | Member, Audit and Finance | CFO of Accenture (Jan 2019 – Nov 2024), Senior Finance Advisor to Mar 2025; 37+ years at Accenture including Head of Investor Relations (2010–2016). Current director of The Goldman Sachs Group. BS accounting and business administration, Pennsylvania State University |
Abhi Y. Talwalkar | 62 | Jun 2017 | Yes | Chair, Innovation and Technology; member, Compensation and Leadership Resources | President and CEO of LSI Corporation (2005–2014); senior roles at Intel (1993–2005) including Corporate VP and Co-GM of the Digital Enterprise Group; earlier Sequent Computer Systems, Bipolar Integrated Technology and Lattice Semiconductor. Chair of Lam Research since 2019 (director since 2011); director of TE Connectivity and Rhythm Technologies. BS electrical engineering, Oregon State University |
Elizabeth W. Vanderslice | 62 | Feb 2022 | Yes | Member, Compensation and Leadership Resources; member, Nominating and Corporate Governance | Partner at Trewstar Corporate Board Services since Feb 2019; director of Xilinx from Dec 2000 to the Feb 2022 AMD acquisition; general manager at Lycos (1999–2001); CEO of Wired Digital (1996–1999); principal at Sterling Payot; VP at H.W. Jesse & Co.; IBM 1986–1990. MBA Harvard Business School; BS computer science, Boston College |
Directors' Remuneration
| Governance feature | Status |
|---|---|
Board size | Nine during FY2025; eight from May 2026 |
Independence | All directors other than Dr. Su are independent under SEC and Nasdaq rules; seven of eight nominees are independent (87.5%) |
Chair/CEO separation | Not separated. Dr. Su serves as both Chair and CEO. Mitigated by a Lead Independent Director with a broad and explicitly enumerated mandate covering agenda-setting, executive sessions, CEO evaluation, CEO succession planning and stockholder access |
Standing committees | Four: Audit and Finance; Compensation and Leadership Resources; Innovation and Technology; Nominating and Corporate Governance. All fully independent |
FY2025 meeting count | Board 7; Audit and Finance 8; Compensation 6; Innovation and Technology 4; Nominating and Corporate Governance 4. Non-employee directors met in session nine times |
Attendance | All directors attended at least 75% of Board and applicable committee meetings; all directors attended the 2025 annual meeting |
Director election | Annual terms; majority-vote standard in uncontested elections with irrevocable contingent resignations |
Proxy access | Stockholders holding 3% or more continuously for at least three years may nominate for up to 20% of directors then serving |
Audit committee financial experts | Householder and Olson (Olson retired May 2026); McClure adds substantial CFO experience |
Compensation consultant | Compensia, Inc., retained by the Compensation Committee as independent adviser |
Risk oversight | Dedicated enterprise risk management function; Chief Compliance Officer reporting to the General Counsel; annual independent cybersecurity adviser report to the Audit and Finance Committee; a management Disclosure Committee |
Insider trading policy | Adopted and filed as an exhibit to the Form 10-K |
2026 stockholder proposal | A stockholder proposal requesting changes to the right to call a special meeting; the Board recommended against |
2026 equity plan amendment | Proposal to increase authorised shares under the 2023 Equity Incentive Plan by 65 million shares |
Investor engagement | During 2025 AMD engaged holders of approximately 35% of total shares outstanding and approximately 68% of its top 100 largest stockholders |
Executive Leadership Team
| Executive | Title | Notes |
|---|---|---|
Dr. Lisa T. Su | Chair, President and Chief Executive Officer | CEO since October 2014; Chair since February 2022. Tenure at AMD since January 2012 |
Jean Hu | Executive Vice President, Chief Financial Officer and Treasurer | CFO since 2023 |
Mark D. Papermaster | Executive Vice President and Chief Technology Officer | Long-tenured; leads technology and engineering |
Forrest Norrod | Executive Vice President and General Manager, Data Center Solutions business unit | Leads the EPYC, Instinct, Pensando and ZT-derived rack-scale organisation |
Darren Grasby | Executive Vice President; named executive officer, compensated in British pounds | Sales leadership |
Ava M. Hahn | Senior Vice President, General Counsel and Corporate Secretary | Signed the 2026 notice of annual meeting |
Directors' Remuneration (Annual)
| Component | Dr. Lisa T. Su (CEO) — FY2025 | Non-CEO NEOs (average) — FY2025 |
|---|---|---|
Salary (USD) | 1,291,258 | not separately captured |
Bonus / non-equity incentive (USD) | 3,125,430 | not separately captured |
Stock awards (USD) | 41,669,390 | — |
Option awards (USD) | 8,951,513 | — |
Stock and option awards combined (USD) | 50,620,903 | 13,567,620 |
All other compensation (USD) | 124,188 | not separately captured |
Summary Compensation Table total (USD) | 55,161,779 | 15,633,139 |
Year-end fair value of FY2025 equity grants (USD) | 66,603,972 | 19,150,261 |
Major Shareholders
| Holder | Shares | % of class | As of | Source |
|---|---|---|---|---|
Vanguard Capital Management, LLC | 122,092,206 | 7.48 | 31 Mar 2026 | Schedule 13G filed 29 Apr 2026; sole voting power over 16,151,940 shares, sole dispositive power over the full amount |
BlackRock, Inc. | 124,945,206 | approx. 7.7 | 31 Dec 2023 | Schedule 13G/A No. |
The Vanguard Group, Inc. (predecessor reporting entity) | 142,442,745 | approx. 8.8 | 2,024 | As cited in AMD's 2025 proxy; superseded by Vanguard's January 2026 internal realignment into Vanguard Capital Management and Vanguard Portfolio Management, which caused VGI to cease being treated as beneficial owner of shares now managed by the new entities |
State Street Corporation | not captured | not captured | — | Not captured in this research pass |
Positions 4 through 10 | not captured | — | — | Not captured in this research pass |
All directors and executive officers as a group | not captured | — | — | — |
Competitive Landscape
Key Competitors
| Competitor | Segments contested | Positioning versus AMD |
|---|---|---|
Nvidia Corporation | Data Center AI accelerators, networking, discrete GPUs, professional graphics | Dominant incumbent in AI accelerators with a proprietary CUDA software moat, rack-scale system leadership and, from FY2026, a 197.3 billion data-centre business. AMD's core competitive challenge |
Intel Corporation | Server CPUs, client CPUs, embedded CPUs, integrated and discrete graphics, foundry | Structurally impaired but recovering: FY2025 revenue flat at 52.9 billion with a small net loss, and Q2 2026 revenue up 25%. Retains unit-share leadership in x86 and is supply-constrained rather than demand-constrained. Now capital-partnered with Nvidia |
Broadcom Inc. | Custom AI accelerators (XPUs), AI networking, ASSPs contested in Embedded | The fastest-growing structural competitor. FY2025 revenue 63.89 billion (+24%) with AI semiconductor revenue up 74% in Q4; Q3 FY2026 revenue of 29.6 billion (+86%). Competes for the hyperscaler custom-silicon budget that AMD's chiplet platform targets |
Marvell Technology, Inc. | Custom AI silicon, data-centre networking, ASSPs in Embedded | Fiscal Q2 2026 revenue of 2.7 billion (+37%); custom hardware agreement with Google. Smaller but directly competitive in custom accelerators |
Qualcomm Incorporated | Arm-based PC CPUs, embedded/edge AI | Snapdragon X drives Arm PC adoption; named by AMD as an ASSP competitor in Embedded |
Altera Corporation | FPGAs and adaptive SoCs (data centre and embedded) | Majority interest divested by Intel in Q3 2025, making Altera an independent competitor for the first time since 2015 |
Lattice Semiconductor Corporation | Low-power FPGAs | Named FPGA competitor in Embedded |
Microsemi Corporation (Microchip) | FPGAs | Named FPGA competitor in Embedded |
Analog Devices, Inc. | ASSPs in Embedded; historic patent litigant against Xilinx | Named ASSP competitor |
Texas Instruments Incorporated | ASSPs in Embedded | Named ASSP competitor |
NXP Semiconductors N.V. | Automotive and industrial embedded | Named ASSP competitor |
Hyperscaler internal silicon (Google TPU, AWS Trainium/Graviton, Microsoft Maia/Cobalt, Meta MTIA) | Data Center CPUs and accelerators | AMD explicitly names customer in-house development as a competitive risk. This is the most under-modelled threat: AMD's largest prospective customers are also its most credible long-run substitutes |
Peer Comparison FY2026
| Metric | AMD FY2025 | Nvidia FY2026 | Intel FY2025 | Broadcom FY2025 |
|---|---|---|---|---|
Revenue (USD Mn) | 34,639 | 215,900 | 52,900 | 63,890 |
Revenue growth YoY (%) | 34 | 65 | 0 | 24 |
GAAP gross margin (%) | 50 | 71 | 35 | not captured |
GAAP operating income (USD Mn) | 3,694 | 130,400 | not captured | not captured |
GAAP operating margin (%) | 11 | 60 | negative | not captured |
GAAP net income (USD Mn) | 4,335 | 120,100 | -300 | 23,130 |
GAAP diluted EPS (USD) | 2.65 | 4.90 | -0.06 | not captured |
R&D expense (USD Mn) | 8,091 | not captured | not captured | not captured |
R&D intensity (% of revenue) | 23.4 | not captured | not captured | not captured |
Adjusted EBITDA (USD Mn) | 8,521 | not captured | not captured | 43,000 |
Free cash flow (USD Mn) | 5,519 | not captured | not captured | 26,900 |
Data-centre / AI revenue (USD Mn) | 16,635 | 197,300 | not captured | not captured |
Market capitalisation, Sep 2026 (USD Bn) | approx. 843 | not captured | not captured | not captured |
Peer Comparison FY2025
| Metric | Latest reading | Period | Source |
|---|---|---|---|
Total x86 CPU unit share (incl. IoT/SoC) | 34.1% (Intel 65.9%), up 4.7 points YoY from 29.4% and from 32.6% in Q1 2026 | Q2 2026 | Mercury Research |
Client x86 CPU unit share | 30.3% (Intel 69.7%) — above 30% for the first time | Q2 2026 | Mercury Research |
Server x86 CPU unit share | 34.5%, up 1.3 points sequentially; 46.4% on a Xeon SP versus EPYC basis excluding networking and storage accounting effects | Q2 2026 | Mercury Research |
Server x86 CPU revenue share | 46.2% | Q1 2026 | Mercury Research via trade press |
Total x86 CPU revenue share | 38.1% | Q1 2026 | Mercury Research via trade press |
Semi-custom game console SoCs | Market share leader | FY2025 | AMD FY2025 10-K |
Discrete GPU | Nvidia is the market share leader; AMD is number two | FY2025 | AMD FY2025 10-K |
Data-centre AI accelerators | Not disclosed by AMD; AMD does not break out Instinct revenue. Nvidia FY2026 data-centre revenue of 197,300 versus AMD FY2025 total Data Center revenue of 16,635 implies AMD holds a low-to-mid single-digit percentage of the merchant accelerator market. AMD has stated a path to double-digit share and tens of billions of AI revenue by 2027 | 2025–2026 | Company disclosures and Financial Analyst Day |
Recent Developments
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