← Advanced Micro Devices, Inc.

AMD · Forward model

Revenue by vertical, 20 quarters out

Model as of

Each segment is projected from its own operating driver, rolled up into consolidated cash flow, and discounted back to a fair value per share. The assumptions below are editable — change them and every number on this page moves with them.

AMD reports THREE operating segments — Data Center, Client and Gaming, Embedded — and discloses Client and Gaming dollars separately inside the second of those. This model carries FOUR verticals so Gaming's console trough is not hidden inside Ryzen. Every historical point is copied from the 8-Ks or derived from two disclosures (Q4 2025 Client = combined $3,940M less Gaming $843M; Q3 2025 Data Center = consolidated $9,246M less the three IR-rounded lines, an $11M remainder). Instinct versus EPYC inside Data Center is NOT split: AMD does not publish it. Helios racks have no ASP or unit count, so Data Center is a growth driver rather than a unit driver — inventing a rack price would look more rigorous and be less true. Fiscal quarters are 13 weeks; 2026 Q2 ended 27 June 2026 and is labelled 2026 Q2. Segment 'EBITDA' here is the disclosed segment operating margin. Client and Gaming OP is published only as a pair ($582M, 15.2%); the 16% and 12% on those two lines are assumed mix. Corporate 9.4% is the All other bucket (acquisition-related amortisation, stock-based compensation, deal costs), not a fourth business. netCash is cash $5,086M plus short-term investments $8,025M less total debt $3,226M. Capex $808M is 7% of the basis quarter and may be a Helios stand-up spike; terminal 4% assumes that. Q2 2025 Data Center OP of −$155M included $800M of MI308 China-export charges and is not a clean year-ago.

AMD REVENUE MODEL

Latest: $33.98B (2031Q2E)

Period Value
2025Q1 $7.44B
2025Q2 $7.68B
2025Q3 $9.25B
2025Q4 $10.27B
2026Q1 $10.25B
2026Q2 $11.54B
2026Q3E $13.01B
2026Q4E $14.46B
2027Q1E $15.87B
2027Q2E $17.24B
2027Q3E $18.55B
2027Q4E $19.80B
2028Q1E $21.00B
2028Q2E $22.14B
2028Q3E $23.24B
2028Q4E $24.30B
2029Q1E $25.32B
2029Q2E $26.32B
2029Q3E $27.30B
2029Q4E $28.26B
2030Q1E $29.21B
2030Q2E $30.16B
2030Q3E $31.11B
2030Q4E $32.06B
2031Q1E $33.01B
2031Q2E $33.98B
Scenarios

Where each case comes from

Valuation

From cash flow to fair value

The published model, discounted at 11.0% a year with an exit multiple of 7.0x on revenue. The sliders above do not change this walk.

Present value of free cash flow, 20 quarters$47.72B
Terminal-year revenue$130.16B
Terminal-year EBITDA$27.62B
Exit multiple, on revenue7.0x
Terminal value$911.10B
Discounted at 11.0% a year, terminal value becomes$540.69B
Share of enterprise value from the terminal92%
Enterprise value$588.41B
Net cash$9.88B
Equity value$598.30B
Shares1.66B
Fair value per share$360.64
Against the deployed price of $503.60, as of −28%

7x terminal revenue on a mid-20s blended operating margin — about 25x that margin — for a fabless semiconductor whose Data Center line has stopped compounding at 18% a quarter. Today the equity is ~$758B at $456.75, EV ~$748B after $9.9B net cash, 18x trailing sales of $41.3B and ~15x a ~$49B FY2026. Nvidia is richer on 60-70% margins this model does not give AMD. The exit is a de-rate, and deliberately. Discount rate is 11%, a point above Nvidia, because Instinct share at Helios scale is unproven and Q2 just showed capex can double in a quarter. Move the exit multiple before anything else: at 4x and at 12x the answer moves by more than Client, Gaming and Embedded combined. Nothing here prices Anthropic's 2 GW or Meta's 6 GW as contracted cash flow; they show up only as the Data Center growth rate they can sustain.

Read the other way round: at $503.60 the market is paying 10.1x terminal-year revenue, holding every other assumption on this page fixed. That is the number to argue about.

Quarter by quarter

The projected path

Quarter Data CenterClientGamingEmbedded Revenue YoY EBITDA Capex FCF R40 PV of FCF
2026 Q3E $7.93B$3.25B$779M$1.06B $13.01B +41% $2.31B $864M $1.26B +50 $1.22B
2026 Q4E $9.14B$3.41B$780M$1.13B $14.46B +41% $2.63B $914M $1.49B +51 $1.42B
2027 Q1E $10.34B$3.56B$781M$1.20B $15.87B +55% $2.95B $959M $1.73B +66 $1.60B
2027 Q2E $11.50B$3.70B$782M$1.26B $17.24B +49% $3.26B $1000M $1.96B +61 $1.77B
2027 Q3E $12.63B$3.82B$784M$1.32B $18.55B +43% $3.56B $1.04B $2.19B +54 $1.93B
2027 Q4E $13.71B$3.93B$786M$1.37B $19.80B +37% $3.85B $1.07B $2.42B +49 $2.07B
2028 Q1E $14.74B$4.04B$789M$1.43B $21.00B +32% $4.13B $1.10B $2.64B +45 $2.20B
2028 Q2E $15.74B$4.14B$791M$1.48B $22.14B +28% $4.40B $1.12B $2.85B +41 $2.31B
2028 Q3E $16.69B$4.23B$794M$1.52B $23.24B +25% $4.66B $1.15B $3.06B +38 $2.42B
2028 Q4E $17.61B$4.32B$797M$1.57B $24.30B +23% $4.92B $1.18B $3.26B +36 $2.51B
2029 Q1E $18.50B$4.41B$800M$1.62B $25.32B +21% $5.16B $1.20B $3.45B +34 $2.59B
2029 Q2E $19.37B$4.49B$804M$1.66B $26.32B +19% $5.40B $1.22B $3.64B +33 $2.66B
2029 Q3E $20.22B$4.57B$807M$1.70B $27.30B +17% $5.64B $1.25B $3.82B +31 $2.72B
2029 Q4E $21.06B$4.65B$811M$1.74B $28.26B +16% $5.87B $1.27B $4.00B +30 $2.78B
2030 Q1E $21.89B$4.73B$814M$1.78B $29.21B +15% $6.10B $1.30B $4.18B +30 $2.83B
2030 Q2E $22.71B$4.81B$818M$1.83B $30.16B +15% $6.33B $1.32B $4.36B +29 $2.87B
2030 Q3E $23.53B$4.89B$822M$1.87B $31.11B +14% $6.56B $1.35B $4.53B +29 $2.91B
2030 Q4E $24.36B$4.96B$826M$1.91B $32.06B +13% $6.79B $1.38B $4.71B +28 $2.94B
2031 Q1E $25.19B$5.04B$830M$1.95B $33.01B +13% $7.02B $1.41B $4.88B +28 $2.97B
2031 Q2E $26.04B$5.12B$834M$1.99B $33.98B +13% $7.25B $1.44B $5.06B +28 $3.00B

Every row is projected. A year-over-year change is shown only where the quarter it compares against exists — an em dash means there is no comparable quarter, not a flat year.

Track record

Model revisions

Assumptions are marked to reality as each quarter prints. Every change is appended here, with the fair value the model produced at the time, so the model's own history stays visible.

DateFair value thenNote
2026-08-25 $360.64 Initial model. Four verticals on the disclosed Data Center / Client / Gaming / Embedded split, basis the June quarter at $11,536M, Q3 calibrated to the $13.0B ± $300M guide.