Advanced Micro Devices, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF with margin expansion. Base revenue $41.31B TTM, FCF margin 20% ($8.40B TTM FCF). Revenue growth 45%/38%/32%/26%/21% (yrs1-5, AI/data-center ramp) then 17%/14%/12%/10%/8% (yrs6-10); FCF margin expands from 20% to 27% (yr5) to 32% (yr10) on operating leverage. 10% discount rate; 3.5% terminal growth. PV(FCF yrs1-10) ~$267.0B plus PV(terminal, TV=$1,504B) ~$580.7B equals EV ~$847.7B. Net cash $8.84B added. Equity value ~$856.5B divided by 1.63B diluted shares.

Reasoning: AMD's data-center/AI segment is genuinely doubling with company-stated targets, justifying an aggressive but decelerating multi-stage growth and margin-expansion DCF; even under bullish assumptions the result sits well below the current market price, implying the market is pricing an even more optimistic AI trajectory than this DCF's already-aggressive case.