AMD
Advanced Micro Devices, Inc.
Technology · Semiconductors · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- AMD earned a maximum growth score driven by 34.3% revenue growth and 164.2% net income growth in FY2025, anchoring the composite score at a high level.
- Near-perfect financial health marks — a 0.05 debt-to-equity ratio and 28.2 interest coverage — contributed strongly to the overall score, reflecting low financial risk.
- Strong quarterly momentum from 2025Q2 through 2026Q1 added further support, though the absence of a dividend and a zero theme score capped the total composite at 62.0 out of 100.
Why Not Higher
- AMD pays no dividend, resulting in a zero score for that factor and meaningfully limiting the composite total regardless of strength in other areas.
- Profitability metrics — a 12.5% net margin, 10.7% operating margin, and 5.6% ROA — are solid but not exceptional, preventing a top score in that factor and holding the overall rating below the highest tier.
Data Confidence
8 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $25,785,000,000 to FY2025's $34,639,000,000, a gain of +34.3%. Net income rose +164.2% from FY2024 to FY2025, and diluted EPS increased +165.0% over the same period, from $1.00 in FY2024 to $2.65 in FY2025.
The model rewarded AMD's simultaneous top-line expansion and dramatic bottom-line acceleration across FY2024 to FY2025, reflecting the kind of broad-based, high-magnitude growth that typically earns a maximum score.
In FY2025, AMD posted a net margin of 12.5%, an operating margin of 10.7%, and a return on assets of 5.6%.
These figures indicate meaningful but not exceptional profitability; the model appears to have rewarded positive and improving margins while stopping short of a top score, likely reflecting that double-digit but moderate margins and a mid-single-digit ROA leave room relative to best-in-class semiconductor peers.
AMD's FY2025 debt-to-equity ratio stands at 0.05, indicating minimal leverage, and its interest coverage ratio of 28.2 in FY2025 shows operating income comfortably exceeds interest obligations. Total assets in FY2025 reached $76,926,000,000, reflecting a substantial balance-sheet base.
The model rewarded AMD's near-zero leverage and very high interest coverage as hallmarks of a financially resilient company, with a large asset base providing additional balance-sheet strength.
Quarterly revenue rose from $7,685,000,000 in 2025Q2 to $10,270,000,000 in 2025Q4, then held near that level at $10,253,000,000 in 2026Q1. Net income followed a similar trajectory, climbing from $872,000,000 in 2025Q2 to $1,511,000,000 in 2025Q4 before easing to $1,383,000,000 in 2026Q1. Operating income swung from -$134,000,000 in 2025Q2 to $1,752,000,000 in 2025Q4, then moderated to $1,476,000,000 in 2026Q1.
The model recognized a strong upward trend across revenue, net income, and operating income over the four-quarter window, with the slight sequential softening in 2026Q1 preventing a perfect score but not undermining the overall positive trajectory.
AMD does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
The model assigns a zero score for this factor because no dividend income is available to investors, which is a structural feature of AMD's capital-allocation approach rather than a temporary gap.
AMD is assigned to the macro themes of AI Infrastructure and Semiconductors.
Although AMD carries two high-profile macro theme assignments, this assignment did not translate into a positive score under the model's current methodology; the theme label reflects the company's business positioning, but the scoring outcome suggests the model's theme component did not award points in this instance.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Advanced Micro Devices delivered exceptional growth in FY2025, with revenue rising 34.3% year-over-year to $34.6 billion and net income surging 164.2%, driving diluted EPS from $1.00 to $2.65. The company's balance sheet is notably strong, with a debt-to-equity ratio of just 0.05 and an interest coverage ratio of 28.2, reflecting minimal financial risk. Profitability is positive and improving, with a 12.5% net margin and 10.7% operating margin in FY2025, though these remain moderate relative to best-in-class semiconductor peers. Quarterly momentum has been robust, with revenue climbing from $7.7 billion in 2025Q2 to over $10.2 billion by 2026Q1, positioning AMD as a Core Holding Candidate within the AI Infrastructure and Semiconductors themes.
Plain English
AMD had a massive year — revenue jumped 34% and profits more than doubled, and the company carries almost no debt, making it a solid but not flashy pick for investors who want exposure to AI and chips without taking on a lot of financial risk.
Bull Case vs. Bear Case
Bull Case
- Revenue grew 34.3% year-over-year to $34.6 billion in FY2025, while net income surged 164.2% and diluted EPS rose 165.0%, demonstrating broad-based, high-magnitude growth across both the top and bottom lines.
- AMD's debt-to-equity ratio of 0.05 and interest coverage ratio of 28.2 in FY2025 reflect an exceptionally clean balance sheet, giving the company significant financial flexibility and resilience.
- Quarterly revenue climbed steadily from $7.7 billion in 2025Q2 to $10.3 billion in 2025Q4 and held near that level at $10.3 billion in 2026Q1, indicating durable and sustained business momentum.
Bear Case
- AMD does not pay a dividend, meaning investors receive no income return while waiting for capital appreciation, which may be a structural drawback for income-oriented portfolios.
- Net margin of 12.5% and return on assets of 5.6% in FY2025, while positive, are moderate compared to best-in-class semiconductor peers, suggesting profitability has room to improve before AMD reaches elite-tier efficiency.
- Operating income dipped from $1.75 billion in 2025Q4 to $1.48 billion in 2026Q1, and net income eased from $1.51 billion to $1.38 billion over the same period, introducing a note of sequential softening that warrants monitoring.
What Could Change the Picture
Bullish Triggers
- A sustained expansion of net and operating margins beyond current mid-double-digit levels would signal that AMD is converting its strong revenue growth into best-in-class profitability, strengthening the investment case.
- Continued quarterly revenue and operating income growth beyond the $10.3 billion and $1.5 billion levels seen in early 2026 would confirm that the recent momentum is durable rather than plateauing.
Bearish Triggers
- A reversal of the strong revenue trajectory — particularly if quarterly revenue falls meaningfully below the $10 billion range established in late FY2025 — would undermine the momentum thesis.
- Any significant increase in leverage from the current near-zero debt-to-equity ratio of 0.05 could erode the financial health advantage that currently distinguishes AMD's balance sheet.
Risk Profile
Low RiskAMD's financial risk profile is low, supported by a debt-to-equity ratio of just 0.05 and an interest coverage ratio of 28.2 in FY2025, meaning the company's operating income far exceeds its interest obligations. Quarterly momentum has been consistently positive, though the slight sequential easing in operating income and net income from 2025Q4 to 2026Q1 is a factor to watch.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.