Does AMD have a strong balance sheet?
How Strong Is Advanced Micro Devices' Balance Sheet? The latest balance sheet data shows that Advanced Micro Devices had liabilities of US$6.69b due within a year, and liabilities of US$5.30b falling due after that. Offsetting this, it had US$5.77b in cash and US$5.39b in receivables that were due within 12 months.
SANTA CLARA, Calif., April 30, 2024 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced revenue for the first quarter of 2024 of $5.5 billion, gross margin of 47%, operating income of $36 million, net income of $123 million and diluted earnings per share of $0.07.
What Is Advanced Micro Devices's Net Debt? As you can see below, Advanced Micro Devices had US$2.47b of debt, at December 2023, which is about the same as the year before. You can click the chart for greater detail. But it also has US$5.77b in cash to offset that, meaning it has US$3.31b net cash.
As of 2024-07-13, the Fair Value of Advanced Micro Devices Inc (AMD) is 17.26 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 181.61 USD, the upside of Advanced Micro Devices Inc is -90.5%.
Advanced Micro Devices has 8.72% upside potential, based on the analysts' average price target. Is AMD a Buy, Sell or Hold? Advanced Micro Devices has a consensus rating of Strong Buy which is based on 29 buy ratings, 7 hold ratings and 0 sell ratings.
AMD staged an amazing turnaround after bottoming in 2015, fueled by new products and improved profitability. And AMD stock rocketed over the next six years. But it slumped starting in late 2021 during a cyclical decline in personal computer sales.
Moreover, shares of AMD are down 20.8% over the past three months, underperforming the broader SPDR NYSE Technology ETF's (XNTK) 3.5% gains over the same time frame. Over the long term, AMD is up 13.2% on a YTD basis, and the stock has soared 34.3% over the past 52 weeks.
AMD's long-term outlook
For investors thinking long-term, AMD stock holds plenty of promise. The company's CEO, Lisa Su, noted, "we are still in the very early stages of what we believe is going to be a period of sustained growth driven by an insatiable demand for both high-performance AI and general purpose compute."
| Name | Equities | % |
|---|---|---|
| Vanguard Fiduciary Trust Co. 8.958 % | 144,794,666 | 8.958 % |
| BlackRock Advisors LLC 5.901 % | 95,384,539 | 5.901 % |
| STATE STREET CORPORATION 4.194 % | 67,780,610 | 4.194 % |
| JPMorgan Investment Management, Inc. 2.404 % | 38,850,008 | 2.404 % |
Even after this meteoric rally, AMD looks undervalued based on its future growth potential.
Is there any hope for AMD?
Dry AMD (Non-Neovascular AMD): Dry AMD is characterised by the gradual breakdown of cells in the macula. Currently, there is no cure for dry AMD, but certain treatments and lifestyle changes may help slow its progression and manage its effects. Currently eye injections with anti-VEGF do not help dry AMD.
AMD's data-center segment grew its revenue by 80% yearly in the first quarter of 2024. If the data-center segment can maintain that growth rate, it could become the dominant part of the company, similar to Nvidia's data-center segment.
AMD is a leading cause of irreversible blindness or vision loss in people over 60, if left untreated. There are two forms of AMD - dry and wet. All cases begin as the dry form, but 10 percent to 15 percent progress to the wet form, which can result in sudden and severe central vision loss.
According to its 5-year AMD stock forecast, the stock can reach $250,59 in May 2029. As far as an AMD stock forecast for 2030 is concerned, Coincodex has the stock reaching $3,456.98 if it maintains its current 10-year average growth rate.
As of 2024-07-19, the Intrinsic Value of Advanced Micro Devices Inc (AMD) is 19.99 USD. This AMD valuation is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 155.77 USD, the upside of Advanced Micro Devices Inc is -87.2%.
Stock Price Forecast
The 29 analysts with 12-month price forecasts for AMD stock have an average target of 198.31, with a low estimate of 145 and a high estimate of 265. The average target predicts an increase of 21.81% from the current stock price of 162.80.
Is AMD stock a Buy, Sell or Hold? AMD stock has received a consensus rating of buy. The average rating score is and is based on 84 buy ratings, 14 hold ratings, and 0 sell ratings.
SANTA CLARA, Calif., April 30, 2024 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced revenue for the first quarter of 2024 of $5.5 billion, gross margin of 47%, operating income of $36 million, net income of $123 million and diluted earnings per share of $0.07.
Total debt on the balance sheet as of March 2024 : $2.99 B
According to AMD's latest financial reports the company's total debt is $2.99 B. A company's total debt is the sum of all current and non-current debts.
According to our valuation model, the stock is currently overvalued by about 35%, trading at US$153 compared to our intrinsic value of $113.54. Not the best news for investors looking to buy! If you like the stock, you may want to keep an eye out for a potential price decline in the future.
What are the weaknesses of AMD?
Weaknesses. Intense Competition: AMD operates in a highly competitive semiconductor market, dominated by companies like Intel and Nvidia. These competitors have significant financial resources, strong brand recognition, and extensive relationships with top-tier OEMs.
AMD chips generally come with more cores overall for the price. AMD chips generally have more cache, which can be great for gaming and other high-performance activities. AMD chips come with better onboard graphics chips, but the new Intel generations are closing this gap quickly.
AMD has a solid outlook over the long term, and earnings-per-share (EPS) estimates seem to support this. The table above shows AMD's earnings could hit just above $7 per share over the next two fiscal years. Multiplying this figure by the company's forward price-to-earnings ratio of 55 yields a stock price of $396.
Analysts estimate AMD will earn $3.41 per share in 2024, up 28% from 2023. Additionally, estimates call for annual earnings growth averaging 33% for the next three to five years, which makes sense if AMD's Data Center and Client units continue to grow and successfully accelerate AMD's broader growth.
But its forward sales multiple of 10 is closer to the five-year average and points toward an improvement in its top line. So, if AMD manages to hit $40 billion in sales in 2026 and trades at 10 times sales at that time, its market cap could increase to $400 billion. That would be a 30% jump from current levels.
