AXON

Axon Enterprise

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Industrials

industry

Aerospace & Defense

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/06/26

Business Summary

AMD designs high-performance semiconductors that power data centers, PCs, and embedded systems, monetizing innovation through chip sales across enterprise and consumer channels. The company generates cash by leveraging advanced chip architectures and outsourcing fabrication while retaining design and IP control. Its moat is rooted in engineering capability, ecosystem integration, and long product development cycles that create switching costs for customers. Scale within the semiconductor industry allows operating leverage during demand upcycles, turning incremental revenue into disproportionately higher earnings when margins expand.

VALUATION

P/E

227.3

Market Cap ($M USD)

$27,812

Forward P/E

32.7

PEG

1.5

PRICE TO SALES

10.3

PRICE TO BOOK

8.6

EV / EBITDA

142.5

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$1.60

Next Year EPS Growth Estimate

$10.57

Next Year Revenue Growth Estimate

29.10%

Return on Equity (ROE)

3.80%

Operating Margin

-2.20%

Debt-to-Equity

0.6

Piotroski F-Score

5

Altman Z-Score

5.4

Return on Invested Capital (ROIC)

3.40%%

Current Ratio

2.5

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 93.5x earnings, the market is pricing AMD as a premium growth compounder despite only a 6.90% operating margin and 6.70% ROIC, which is aggressive. However, the Forward P/E of 22.7 combined with a PEG Forward of 0.8 suggests earnings acceleration is expected to materially compress valuation, implying the multiple may be front-loaded rather than permanently stretched. The Altman Z-Score of 18.2 signals extremely low bankruptcy risk, and a Piotroski F-Score of 7 reinforces operational stability. This is not a distressed cyclical—it’s a financially secure growth franchise temporarily optically expensive on trailing earnings but potentially mispriced relative to forward growth.

AI Exposure / Tech Reliance

Operating in Semiconductors within the Technology sector, AMD sits directly at the center of AI compute, data center expansion, and high-performance processing demand. The industry’s structural tailwinds favor scalable chip designers that can iterate quickly and capture share in AI workloads. Given its valuation structure and forward multiple compression, the market clearly expects AMD to remain deeply relevant in next-generation compute cycles.

The Bull Case

A GARP investor buys this because the numbers show financial quality beneath the surface volatility. A Piotroski F-Score of 7 signals solid balance sheet and earnings quality trends, while Return on Equity of 43.70% is elite and indicates strong capital efficiency. The Current Ratio of 2.9 and Debt/Equity of 10.70% reflect a conservatively levered balance sheet with ample liquidity, reinforcing resilience. Despite a modest 6.90% operating margin and 6.70% ROIC, the Forward P/E of 22.7 and PEG of 0.8 suggest the market expects growth to accelerate faster than valuation expansion, creating a classic GARP setup where multiple compression meets earnings expansion.

The Bear Case

The stock is priced for execution perfection. A trailing P/E of 93.5 with only a 6.90% operating margin leaves no room for cyclical missteps, especially in a notoriously volatile semiconductor industry. ROIC at 6.70% is not exceptional relative to the valuation premium, raising questions about incremental capital efficiency. The absence of meaningful dividend yield (0.1 TTM Yield, no Dividend Per Share, 0 five-year average) means shareholders are entirely dependent on price appreciation, and with a PEG already at 0.8, any slowdown in projected growth could rapidly rerate the stock downward.

Market Sentiment & Smart Money

Short Interest %

3.70%

Analyst Consensus

1.38

Average Analyst Price Target

$728.28

Institutional Ownership %

85.80%

1-Year Beta

1.17

Insider Buying % (6 Mo)

4.40%%

Distance to 52-Week High

39.10%%

Distance to 52-Week Low

102.00%%