Advanced Micro Devices Inc

Section 1: Company Overview and Fundamentals

1. 1 Company Overview:

Advanced Micro Devices, Inc. (NASDAQ: AMD) is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded.

Kalkine’s American Tech Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Price Performance:

• AMD's share price has been corrected by 10.85% in the past one month. On the other hand, the stock has given a return of 58.19% over past six months.

• The stock is leaning towards the higher band of its 52-week range of USD 186.65 and 52-week low price of USD 76.48, with the current price near an important support area of USD 140.00-USD 150.00, therefore an expectation of upward movement if the levels sustain.
• The price is currently between its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 39.21, nearing oversold zone, with expectations of upward movement.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~29.11% of the total shareholding, signifying concentrated shareholding. The Vanguard Group, Inc., and BlackRock Institutional Trust Company, N.A. are the biggest shareholders, holding the maximum stake in the company at ~9.49% and ~5.53%, respectively.

1.4 Key Metrics

Advanced Micro Devices, Inc. (NASDAQ: AMD) presented a mixed financial profile for the second quarter of fiscal 2025 compared to the same period in 2024, with gross profit margin declining from 42.71% to 35.80% due to an USD 800 million inventory write-down from U.S. export restrictions on MI308 GPUs, though this was partially offset by a 32% revenue increase to USD 7.7 billion as of September 09, 2025, reflecting strong EPYC and Ryzen sales. Profitability metrics weakened significantly, with EBITDA margin dropping from 18.06% to 8.11%, operating margin falling from 4.44% to -1.74%, and income before tax margin turning negative from 5.12% to -0.96%, driven by elevated operating expenses of USD 3.193 billion (up 23%), yet net margin surprisingly rose from 4.54% to 9.99%, likely due to tax benefits or one-time adjustments, alongside improved return metrics including return on average total assets increasing from 2.42% to 4.70% and return on invested capital rising from 1.99% to 3.83%. The trailing twelve-month (TTM) free cash flow yield also improved from 0.51% to 1.49%, supported by a record USD 1.2 billion in free cash flow, suggesting that despite short-term margin pressures and export-related challenges, AMD’s strategic investments in AI and CPU growth, coupled with a resilient revenue base, position it for potential recovery and sustained value creation, though careful oversight of cost management and regulatory impacts remains essential.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of Q2FY25:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Technical Summary:

 Price Performance:

• AMD's share price has been corrected by 10.85% in the past one month. On the other hand, the stock has given a return of 58.19% over past six months.

• The stock is leaning towards the higher band of its 52-week range of USD 186.65 and 52-week low price of USD 76.48, with the current price near an important support area of USD 140.00-USD 150.00, therefore an expectation of upward movement if the levels sustain.
• The price is currently between its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 39.21, nearing oversold zone, with expectations of upward movement.    

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 09, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.