Equity Research Report

Quantitative Scoring Engine v5.1 — 1 Ticker

Date: 28 May 2026Horizon: 1-2 yearsEngine: stock_researcher v5.1

Executive Summary

TickerPriceVerdictConvictionScoreBase TargetUpsideFortress
AMD$495.52CAUTIOUS YES5/106.8$480-3%Good

AMD Advanced Micro Devices, Inc. Technology CAUTIOUS YES — 5/10
Conviction
5/10

Overall: ALL PASSED

GateDetail
✓ G1 Price Data$495.52
✓ G2 Market CapMarket Cap: $808.00B
✓ G3 Price History252 trading days (min: 100)
✓ G4 OptionsOptions available (20 expirations)
✓ G5 DelistingNo delisting signals
Fundamentals (40%)7.86/10
FactorWeightRaw ValueScore (0–10)Contribution
Revenue Growth25%37.8% MEASURED10.02.500
Gross Margin15%53.1% [+13.0pp YoY] MEASURED7.31.101
Operating Margin15%14.4% [+16.1pp YoY] MEASURED6.91.035
Fcf Yield10%0.9% (growth adj) MEASURED4.80.483
Roic15%ROA=3.6% (ROIC fallback) MEASURED5.20.778
Debt Health10%ND/EBITDA=-1.0x, ICR=54.6x, CR=2.73 MEASURED9.60.963
Earnings Trajectory10%EPS(T)=3.02, EPS(F)=12.96, Fwd=+329% MEASURED10.01.000
Technicals (15%)5.80/10
FactorWeightRaw ValueScore (0–10)Contribution
Trend Alignment25%above 50-DMA, above 200-DMA, golden cross, ADX=47 (strong trend) MEASURED10.02.500
Mean Reversion25%RSI=74 (overbought), %B=88 (above mid-band) MEASURED0.50.125
Momentum20%MACD above signal, histogram positive, ROC=53.3% (strong up) MEASURED8.21.640
Positioning Sentiment20%SI=2.2% (moderate), P/C=0.91 (neutral) MEASURED6.21.240
Volume Confirmation10%RVOL=0.5x (weak) MEASURED3.00.300
Fortress Fit (30%)7.43/10
FactorWeightRaw ValueScore (0–10)Contribution
Iv Richness35%69% MEASURED9.63.375
Iv Vs Hv10%IV/HV=0.81x MEASURED2.50.250
Beta Gap Risk10%2.40 MEASURED8.00.800
Gap History10%Worst day: -17.3%, >5% drops: 12 MEASURED2.00.200
Capital Outlay5%$49,552 per 100 shares MEASURED9.00.450
Entry Timing10%LEAPS available MEASURED5.50.550
Options Liquidity20%near-term OI 51,605 (deep), LEAPS OI 8,490 (~477d, good), spread 2% (tight) MEASURED9.01.800
Valuation (15%)4.06/10
FactorWeightRaw ValueScore (0–10)Contribution
Forward Pe30%38.2x MEASURED5.01.500
Peg Ratio20%1.21 MEASURED6.01.200
Ev Ebitda20%109.4x MEASURED1.50.300
Analyst Upside15%-4.7% to $472 MEASURED2.60.386
Ps Or Pb15%P/S=21.6x (asset-light) MEASURED4.50.675
Fundamentals 7.9 Technicals 5.8 Fortress Fit 7.4 Valuation 4.1 6.8Composite Score
PillarScoreWeightContribution
Fundamentals (40%)7.8640%3.144
Technicals (15%)5.8015%0.870
Fortress Fit (30%)7.4330%2.229
Valuation (15%)4.0615%0.609
Composite Score6.85
▶ Raw Data Fetched (click to expand)
FieldValueSource
Price495.52yfinance/IBKR
Market Cap$808.00Byfinance
IV (IBKR)69.3%IBKR live
IV (yfinance)71.0%yfinance options
HV 30d86.0%computed
Beta2.399yfinance
Revenue Growth37.8%yfinance
Gross Margin53.1%yfinance
Operating Margin14.4%yfinance
FCF$7.17Byfinance
ROE (ref)8.1%yfinance
ROA (ref)3.6%yfinance
Total EquityN/Ayfinance
D/E Ratio6.00yfinance
Current Ratio2.73yfinance
EPS Trailing3.02yfinance
EPS Forward12.96yfinance
Earnings Growth91.2%yfinance
Fwd P/E38.24yfinance
PEG Ratio1.21yfinance
EV/EBITDA109.44yfinance
P/S Ratio21.57yfinance
P/B Ratio (ref)12.53yfinance
Analyst Target$472.16666yfinance
Near-term ATM OI51,605~45d chain
LEAPS ATM OI8,490~477d chain
Near-term Spread %2.5%~45d chain
Has LEAPSYesyfinance
Next Earnings2026-08-05yfinance
Worst 1-Day Drop-17.3%price history
>5% Drop Days12price history
RSI 1474.1computed
MACD47.01computed
ADX 1446.90computed
Relative Volume0.45computed
52W High$510.21yfinance
52W Low$108.62yfinance
1Y Return+332.6%yfinance
▲ MODERATELY STRETCHED UP
Moderately stretched upward with overbought momentum indicators suggesting caution on immediate entries.
90-Day Price
$191 $504
Price
$495.52
Market Cap
$808.0B
P/E (TTM)
164.08x
Fwd P/E
38.24x
Revenue
$37.45B
Rev Growth
37.8%
Gross Margin
53.1%
EPS (TTM)
3.02
30d IV
69.3% (8th pctl)
IV Source
IBKR Live
HV (30d)
86.0%
Beta
2.40
Worst Day
-17.3%
52W Range
$108.62-$510.21
1Y Return
+332.6%
FCF
$7.17B
Next Earnings
2026-08-05

Investment Thesis

AMD earns a CAUTIOUS YES with 5/10 conviction, driven by exceptional fundamentals (7.9/10) but held back by stretched valuation (4.1/10). The company demonstrates powerful operating leverage with 37.8% revenue growth, gross margins expanding 13pp YoY to 53.1%, and forward EPS growth of 329%. The balance sheet is fortress-like with net cash position and 54.6x interest coverage. However, the forward P/E of 38.2x and EV/EBITDA of 109.4x reflect aggressive expectations, while analyst targets suggest limited upside at current levels. The Fortress Fit score of 7.4/10 supports income generation strategies despite valuation concerns.

Technicals

Current Price$495.52
50 DMA315.38 (above)
200 DMA234.15 (above)
RSI (14)74.1 (overbought)
Stochastic RSI62
MACD47.007 (signal: 45.469)
ADX (14)47 (trending)
Bollinger (20,2)326.26 / 422.98 / 519.69
BB %B87.5%
Relative Volume0.45x
% From 52W High-2.9%
Support Levels
$393.36
$224.64
$193.90

AMD exhibits strong trend characteristics with golden cross formation and ADX at 47 signaling robust momentum, supported by MACD remaining above signal line. However, RSI at 74 indicates overbought conditions while Bollinger Band positioning at 88% suggests the stock is extended above its mean. Momentum remains positive with 53.3% rate of change, though volume confirmation is weak at 0.5x relative volume. Key support levels sit at 393 and 225, providing defined risk parameters for structured positions.

ScenarioPrice TargetTimelineRationale
Bear$3506-9Semiconductor cycle downturn or AI demand normalization triggers multiple compression, pulling stock back toward 393 support level with further decline possible.
Base$48012-18Steady execution on data center and AI chip roadmap maintains current premium valuation as earnings growth justifies forward multiples.
Bull$65018-24AI infrastructure buildout accelerates beyond expectations while market share gains in server CPUs drive sustained 30%+ revenue growth.

Key Risks

Primary risk lies in valuation vulnerability, with 109.4x EV/EBITDA leaving little room for execution missteps or demand softening. High beta of 2.4 amplifies market volatility exposure, while gap history shows 12 instances of 5%+ single-day drops including a 17.3% worst-case scenario. Competition from NVIDIA in AI chips and Intel's foundry ambitions could pressure market share assumptions embedded in current multiples.

Fortress Suitability: Good

Strong Fortress candidate with 7.4/10 fit score, driven by rich 69% IV levels enabling attractive premium collection and excellent options liquidity with 51,605 near-term OI and tight 2% spreads. The 49,552 capital requirement per 100 shares is reasonable for the income potential, though the 2.4 beta and significant gap history require careful strike selection and position sizing to manage downside exposure.


Disclaimer: This report is auto-generated for informational purposes only. Verdicts and conviction scores are computed by a deterministic quantitative scoring engine (4-pillar model with hard gates). Narrative sections are generated by Anthropic Claude and may contain errors. Fundamental data from Yahoo Finance. IV data from IBKR (where available) or Yahoo Finance options. All data subject to delays. Options trading involves substantial risk. Always do your own due diligence.