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AMD - AI Stock Analysis

Analysis generated October 20, 2025

Advanced Micro Devices (AMD) is a global semiconductor company that develops computer processors and related technologies for business and consumer markets. Known for its high-performance computing solutions, the company competes directly with giants like Intel and NVIDIA. AMD has been a key player in the CPU and GPU markets with a broad product portfolio serving both consumer and enterprise markets.

Fundamental Analysis

AMD's revenue for the last quarter was $7.69B. This is an increase of 3.32% compared to the previous quarter, which is a positive sign of growth. More impressively, when compared to the same quarter last year, revenue rose by 31.71%, indicating robust year-over-year growth. Net income for the last quarter stood at $872M, marking an increase of 22.99% compared to the previous quarter and a staggering 229.06% year-over-year growth, highlighting significant profit improvements.

However, it is essential to point out that EBITDA for the last quarter was $729M, a decrease of 54.06% compared to the previous quarter and a drop of 36.33% year-over-year. This decline can be a cause for concern as it may indicate operational inefficiencies or increased expenses. The current Price to Earnings (P/E) ratio is 138.74, which is considered high and may suggest that the stock is overvalued. Additionally, there have been several instances of company insiders selling their stock recently, which could be a bearish indicator.

Technical Analysis

Currently, AMD's stock price stands at $240.56, reflecting a notable increase of 52.84% compared to a month ago, demonstrating a positive short-term trend. Similarly, there has been an increase of 52.35% compared to the stock price from a year ago, suggesting a positive long-term trend as well. The trend for AMD appears to be bullish.

Further analysis shows that the current Simple Moving Average (SMA10) is $227.73, higher than the previous SMA10 of $225.16, indicating an upward trend in price movement. The Relative Strength Index (RSI) is 30.4, which is in a neutral condition.

Alternative Data Analysis

In terms of job postings and employee sentiment, AMD has around 1,000 open positions, down by 22% over the last couple of months, likely indicating efforts to improve margins or cut costs, which might not be a positive sign for a growing company. Employee business outlook at AMD remains neutral.

Regarding customer acquisition, AMD's webpage attracts an estimated 14 million visitors, with no meaningful increase or decrease recently. The number of daily mobile app downloads remains stagnant. Customer engagement metrics further reveal that AMD has 2 million followers on Instagram and 1.3 million followers on Twitter, with follower counts stable, indicating no significant increase or loss in interest.

According to AltIndex's AI score, which predicts stock price based on fundamental, technical, and alternative data analysis, AMD holds a score of 47, suggesting a "hold" signal.

Conclusion

AMD's fundamental data reveals strong revenue and net income growth, though a declining EBITDA could be a point of concern. The current P/E ratio suggests potential overvaluation. Technically, the stock exhibits a bullish trend with a rising SMA10 and a neutral RSI. However, alternative data such as job postings and employee sentiment remain neutral, with minimal changes in customer acquisition or engagement.

Based on this comprehensive analysis, the recommendation is to "hold." While the growth metrics are promising, the high P/E ratio, insider selling, and concerns in EBITDA warrant caution. Monitoring future financial performance and alternative data trends will be crucial for making well-informed investment decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.