Advanced Micro Devices Inc
NASDAQ:AMD

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Advanced Micro Devices Inc
NASDAQ:AMD
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Price: 113.385 USD -1.03%
Market Cap: 183.3B USD

ROCE
Return on Capital Employed

4.5%
Current
3%
Average
2.6%
Industry

ROCE, or Return on Capital Employed, is a financial ratio that measures a company’s profitability in relation to the capital it employs.

ROCE
4.5%
=
EBIT
2.8B
/
Capital Employed
62.6B

ROCE Across Competitors

Advanced Micro Devices Inc
Glance View

Economic Moat
Narrow
Market Cap
183.3B USD
Industry
Semiconductors

In the dynamic world of semiconductor manufacturing, Advanced Micro Devices, Inc. (AMD) stands as a formidable player, innovating relentlessly in the high-tech landscape. Founded in 1969, AMD has steadily carved out a prominent position in the marketplace by delivering cutting-edge microprocessors, graphics processing units (GPUs), and related technologies. The company's journey can be likened to a strategic chess game, where each move is meticulously planned to outwit larger rivals like Intel and NVIDIA. The core of AMD's business revolves around designing and selling advanced computer processors and graphics technologies used in everything from laptops and gaming consoles to servers and workstations. By leveraging its state-of-the-art architecture, notably the "Zen" core, AMD has managed to capture market share and redefine performance standards across various computing platforms. Under the leadership of CEO Dr. Lisa Su, AMD has shifted its focus towards high-performance computing and visualization. This pivot has been instrumental in the company's recent revenue growth. Their business model primarily hinges on licensing intellectual properties and selling integrated circuits to computer manufacturers and data centers, which are increasingly pivotal in today’s cloud-centric environment. AMD's revenue streams are primarily derived from two segments: Computing and Graphics, and Enterprise, Embedded, and Semi-Custom. The former focuses on consumer products such as PCs and graphics cards, while the latter abstracts the lucrative server and embedded solutions space. This dual-segment strategy not only diversifies AMD's offerings but also insulates it from the volatility sometimes observed in the consumer electronics market, allowing it to thrive even as macroeconomic challenges persist.

AMD Intrinsic Value
137.006 USD
Undervaluation 17%
Intrinsic Value
Price
What is Return on Capital Employed?

ROCE, or Return on Capital Employed, is a financial ratio that measures a company’s profitability in relation to the capital it employs.

ROCE
4.5%
=
EBIT
2.8B
/
Capital Employed
62.6B
What is the ROCE of Advanced Micro Devices Inc?

Based on Advanced Micro Devices Inc's most recent financial statements, the company has ROCE of 4.5%.

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