AMD
Advanced Micro Devices Inc
Price:  
137.82 
USD
Volume:  
36,013,010
United States | Semiconductors & Semiconductor Equipment

AMD Fair Value

-75.1 %
Upside

What is the fair value of AMD?

As of 2025-07-09, the Fair Value of Advanced Micro Devices Inc (AMD) is 34.34 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 137.82 USD, the upside of Advanced Micro Devices Inc is -75.1%.

Is AMD a good investment?

With the market price of 137.82 USD and our fair value calculation, Advanced Micro Devices Inc (AMD) is not a good investment. Investing in AMD stocks now will result in a potential loss of 75.1%.

137.82 USD
Stock Price
34.34 USD
Fair Price
FAIR VALUE CALCULATION

AMD Fair Value

Peter Lynch's formula is:

AMD Fair Value
= Earnings Growth Rate x TTM EPS
AMD Fair Value
= 25 x 1.37
AMD Fair Value
= 34.34

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income2,4903,1621,3208541,6411,893
YoY growth630.2%27%-58.3%-35.3%92.2%131.2%

AMD Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Texas Instruments Inc196,8025.426.82-87.6%
Qualcomm Inc173,61410.1253.5159%
Micron Technology Inc139,0485.661.38-50.7%
Analog Devices Inc121,6563.752.49-78.6%
Marvell Technology Group Ltd62,153-0.6-2.84-104%
NXP Semiconductors NV58,6969.3233.640.6%
Xilinx Inc48,4143.718.7-90.4%
Maxim Integrated Products Inc27,7003.115.66-84.8%
ON Semiconductor Corp24,0771.537.91-34.2%
First Solar Inc17,74611.8294.8978.2%

AMD Fair Value - Key Data

Market Cap (mil)223,461
P/E100.3x
Forward P/E81.3x
EPS1.37
Avg earnings growth rate131.2%
TTM earnings2,227

AMD Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.