BN · rank #2 · 2026-10-19
AMD
NASDAQ · $863.17B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.92 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +74.8% |
| Forward net margin Consensus forward net margin. | +18.5% |
| Net margin TTM Trailing twelve month net margin. | +15.6% |
| Margin expansion Forward minus trailing net margin (percentage points). | +2.9% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.63 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.51× |
| Analyst upside Spread between the consensus 12m target and the current price. | +18.7% |
| Last EPS surprise Most recent reported EPS versus consensus. | +23% |
| Market cap (USD) | $863.17B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
AMD designs and sells CPUs, GPUs, and AI accelerators spanning data center, client, and embedded markets, with its Instinct/EPYC/Helios rack-scale stack positioned as an end-to-end alternative to NVIDIA's AI infrastructure.
Rationale
The bottleneck-solver signal is reinforced by AMD's literal rack-level architecture (Helios at 2.9 exaFLOPS FP4, 31TB HBM4) attacking the compute/memory/networking bottleneck simultaneously, with 107% YoY Data Center revenue growth and a 0.63 forward PEG confirming the market is not yet pricing the growth rate fully.
Material risks
- 1Hyperscalers (Microsoft, Google, Meta) are accelerating custom ASIC programs (Maia, TPU, MTIA), which directly erodes AMD's accelerator TAM at its largest customers without AMD holding a disclosed sole-source allocation or long-term supply contract to buffer the shift.
- 2NVIDIA's CUDA ecosystem lock-in and integrated rack roadmap (Vera Rubin NVL72) mean AMD's claimed 15% compute and 50% HBM capacity advantages may not translate to durable software adoption or pricing power, keeping AMD in a perpetual benchmark-to-revenue conversion risk.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.