Stock (Symbol) |
Advanced Micro Devices (AMD) |
Stock Price |
$207 |
Sector |
| Technology |
Data is as of |
| February 16, 2026 |
Expected to Report |
| May 4 |
Company Description |
 Advanced Micro Devices, Inc. is a global semiconductor company. Its segments include Computing and Graphics, and Enterprise, Embedded and Semi-Custom.
The Computing and Graphics segment primarily includes desktop and notebook microprocessors, accelerated processing units that integrate microprocessors and graphics, chipsets, discrete graphics processing units (GPUs), data center and professional GPUs, and development services. It may also sell or license portions of its intellectual property (IP) portfolio. The Enterprise, Embedded and Semi-Custom segment primarily includes server and embedded processors, semi-custom system-on-chip (SoC) products, development services, and technology for game consoles, and it may also sell or license portions of its IP portfolio. Its microprocessor customers consist primarily of original equipment manufacturers (OEMs), large public cloud service providers, original design manufacturers (ODMs), system integrators, and independent distributors. Source: Refinitiv |
Sharek’s Take |
 Advanced Micro Devices (AMD) had a very strong quarter as more companies are building powerful computer systems to support Artificial Intelligence (AI). Last qtr, AMD delivered strong profit growht of 40% profit growth on a 34% rise revenue. The biggest driver was its Data Center segment (+39% yoy growth), where large cloud companies and big enterprises bought more EPYC server chips and Instinct MI350 AI accelerators to run AI programs and heavy computing tasks. In other news, AMD and Meta formed a partnership where Meta will purchase ~$80 billion in AI infrastructure from AMD during the next 5 years. In return, AMD issued Meta warrants for ~10% of AMD stock. For perspective, AMD did $35 billion in revenue in 2025, and is estimated to do $106 billion in 2029.
Advanced Micro Devices is a semiconductor company focused on high-performance computing technology, software, and products. It develops high-performance CPUs and GPUs and integrates these with hardware and software. CPUs are used for client systems, high-performance computing, and cloud computing. GPUs are used for gaming, artificial intelligence, and virtual reality. The company has four business segments, here’s some info from last qtr:
AMD has an excellent Estimated Long Term Growth Rate of 46% per year and a reasonable P/E of 31. Although AMD doesn’t pays a dividend, management buys back stock. In 2025, management bought back 12.4 million shares and returned $1.3 billion to shareholders. The demand for compute has never been greater, and the profit estimates shows how much bigger the next phase will be. AMD made $4.17 in profits in 2025. Annual Profit Estimates are for $6.65 for 2026, $10.50 in 2027, and $13.42 for 2028. The stock could be a huge winner from AI spending in the coming years. AMD is part of the Growth Portfolio. I will add AMD to the Aggressive Growth Portfolio today. |
One Year Chart |
 AMD broke out last year on its deal with OpenAI, which included warrants that could dilute shares by 10%. Note, the META deal is also expected to dilute shares by 10%.
AMD has a P/E of 31 this qtr. My Fair Value is a P/E of 35. So the stock seems a bit undervalued to me. The Est. LTG is an amazing 46%, up from 40% last qtr. Qtrly profit growth accelerated from 20% to 30%. Note the triple-digit estimate is lapping the -30% qtr from 3QtrsAgo. So comparisons are easy. |
Earnings Table |
 Last qtr, AMD delivered 40% profit growth and beat expectations of 20%. Revenue increased 34%, year-over-year versus estimates of 26%. Gross margin was 57% compared to 54% a year ago. Operating margin was 28% compared to 26% a year ago.
Annual Profit Estimates increased this qtr. Last November, management said they see a clear path th achieving 35% revenue growth the next 3-5 years. Qtrly profit Estimates are for 32%, 196%, 40%, and 48% growth in the next four qtrs as AI products scale up. Analysts estimate 32% revenue growth next quarter. |
Fair Value |
 With AMD at $207 this qtr, the stock AMD has P/E of 31.
My Fair Value is a P/E of 35, that’s $233 a share. So the stock seems a bit undervalued. When we look to 2027, my Fair Value is $368, giving the stock upside of 77%. |
Bottom Line |
 Advanced Micro Devices (AMD) grew profits nicely during 2017 – 2022. Profits failed to hit new highs in 2023 and 2024. The stock has been crazy the past ten years.
AMD is expecting exceptional growth from AI infrastructure. OpenAI and Meta are big customers, but management had to give 20% of the company away to get these deals done. Still, profits are expected to climb at a rapid rate the next 2-5 years. AMD moves up from 12th to 8th in the Growth Portfolio Power Rankings. I will add the stock to the Aggressive Growth Portfolio where it will rank 10th in the Power Rankings. |
Power Rankings |
Growth Stock Portfolio
12 of 29Aggressive Growth Portfolio 10 of 17Conservative Stock Portfolio N/A |
