Is the business good?
How good a business is AMD?
Advanced Micro Devices earns 8.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.9%
Return on invested capital · cost of capital 9.0% · 0.06 points below what the capital costs: growth destroys value
- Operating margin
- 16%
Operating margin · Semiconductors median 8.5% · 12 months to Q2 2026
- Cash conversion
- 1.31×
Cash conversion · 1.43× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +1.8%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 14% |
| FY2021 | 22% |
| FY2022 | 5.4% |
| FY2023 | 1.8% |
| FY2024 | 7.4% |
| FY2025 | 11% |
Details›
- Gross margin12 months to Q2 2026
- 53%
- Operating margin12 months to Q2 2026
- 16%
- Net margin12 months to Q2 2026
- 16%
- Free cash flow margin
- 20%
- R&D as % of revenue
- 23%
- Revenue, trailing twelve months
- $41.3B
- Free cash flow, trailing twelve months
- $8.40B
- Net income, trailing twelve months
- $6.43B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Semiconductors
Ranks #13 of 48 by Smart Score