Stock Analysis on Net

Advanced Micro Devices Inc. (NASDAQ:AMD)

$24.99

Price to Earnings (P/E)
since 2005

Microsoft Excel

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Calculation

Advanced Micro Devices Inc., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-25).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Advanced Micro Devices Inc. Annual Report.


The price-to-earnings (P/E) ratio exhibits significant fluctuations over the observed period. Initially, the ratio is very high, followed by periods of non-calculation due to negative earnings per share (EPS). Subsequently, the ratio demonstrates considerable volatility, peaking at exceptionally high values before experiencing declines and subsequent increases.

Early Period (2006-2009)
In 2006, the P/E ratio is reported at 118.04. Following this, the ratio is not calculable for several years (2007-2009) due to negative earnings per share. This indicates periods of unprofitability that prevent meaningful P/E ratio assessment.
Recovery and Stabilization (2010-2012)
The P/E ratio returns to a calculable value in 2010 at 17.53, decreasing to 10.61 by 2012. This period suggests a recovery in earnings relative to share price, resulting in a more moderate valuation. However, the ratio is again not calculable in 2013 due to negative EPS.
Volatility and Peaks (2014-2018)
From 2014 through 2018, the P/E ratio experiences substantial volatility. It reaches a peak of 282.39 in 2017, followed by a decrease to 68.76 in 2018. This suggests periods of rapid earnings growth followed by potential corrections or shifts in investor sentiment. The high values indicate investors were willing to pay a substantial premium for each dollar of earnings during certain periods.
Recent Trends (2019-2026)
The P/E ratio remains volatile in the later years. It increases to 169.62 in 2019, then declines to 41.66 in 2020, and fluctuates around 45-96 for the next two years. A significant peak is observed in 2023 at 317.27, followed by a decrease to 110.61 in 2024 and 75.29 in 2025. The most recent value, in 2026, is 75.29. This continued fluctuation suggests ongoing changes in market expectations and company performance.

Overall, the P/E ratio demonstrates a pattern of instability, punctuated by periods of very high valuation. The frequent instances of negative EPS and resulting non-calculable ratios highlight periods of financial challenge. The significant peaks suggest periods of strong investor optimism or speculative investment, while subsequent declines indicate potential corrections or shifts in market perception.


Comparison to Competitors

Advanced Micro Devices Inc., P/E, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-25).


Comparison to Sector (Semiconductors & Semiconductor Equipment)

Advanced Micro Devices Inc., P/E, long-term trends, comparison to sector (semiconductors & semiconductor equipment)

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-25).


Comparison to Industry (Information Technology)