Advanced Micro DevicesWBO:AMD -0.43%80 Gross Margin % is 52.82% as of Mar. 2026, which is 18% above its 10-year median of 44.73. GuruFocus rates WBO:AMD with a GF Score™ of 80/100 and a GF Value™ of €202.89 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,011 Semiconductors companies, Advanced Micro Devices ranks better than 83.18% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Advanced Micro Devices had a gross margin of 52.82% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Advanced Micro Devices Gross Margin % Related Terms
Advanced Micro Devices Gross Margin % Historical Data
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The historical data trend for Advanced Micro Devices's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
WBO:AMD vs MU, INTC, TXN: Gross Margin % Comparison
For the Semiconductors subindustry, Advanced Micro Devices's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Advanced Micro Devices Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Advanced Micro Devices's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Advanced Micro Devices's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Advanced Micro Devices (WBO:AMD) has a Gross Margin % of 52.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Advanced Micro Devices and its competitors. This is 18% above median its historical median of 44.73. Over the past decade, Advanced Micro Devices' Gross Margin % has ranged from 23.22 to 50.28. According to the industry distribution chart, Advanced Micro Devices ranks #170 out of 1011 companies in the Semiconductors industry, placing it in the top 16.8%.
Is Advanced Micro Devices' Gross Margin % too high?
Advanced Micro Devices' current Gross Margin % of 52.82% is 18% above median its 10-year median of 44.73. Over the past 10 years, this metric has ranged from a low of 23.22 to a high of 50.28. The Semiconductors industry median Gross Margin % is 29.61. Advanced Micro Devices' value of 52.82% is 78.4% above this industry median. Based on the distribution chart, Advanced Micro Devices ranks #170 out of 1011 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Advanced Micro Devices has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advanced Micro Devices' Gross Margin % compare to MU and INTC?
According to the Semiconductors industry distribution chart, Advanced Micro Devices ranks #170 out of 1011 companies for Gross Margin %. This places Advanced Micro Devices in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Advanced Micro Devices' value of 52.82% is 78.4% above this benchmark. Historically, Advanced Micro Devices' own Gross Margin % has ranged from 23.22 to 50.28 over the past decade. While the company's 10-year median is 44.73 vs. the industry median of 29.61, Advanced Micro Devices has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advanced Micro Devices's current Gross Margin % of 52.82% is 78.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Advanced Micro Devices and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Micro Devices's current Gross Margin % is 52.82%, which is 18% above median its own 10-year median of 44.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Micro Devices stock overvalued right now?
Based on GuruFocus' analysis, Advanced Micro Devices (WBO:AMD) is currently considered Significantly Overvalued. The stock's GF Value™ is €202.89, compared to a current price of €456.25 — trading 124.9% above its estimated fair value. The current Gross Margin % is 52.82%, which is 18% above median its 10-year median of 44.73 and 78.4% above the Semiconductors industry median of 29.61. Advanced Micro Devices' overall GF Score™ is 80/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Advanced Micro Devices (WBO:AMD), the current Gross Margin % is 52.82% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Advanced Micro Devices (WBO:AMD) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Micro Devices stock appears to be overvalued.
The current stock price of €456.25 is trading 124.9% above its estimated GF Value™ of €202.89.
GuruFocus considers Advanced Micro Devices to be Significantly Overvalued.
Key valuation signals for WBO:AMD:
Gross Margin %: 52.82% (18% above median its 10-year median of 44.73)
GF Value™: €202.89 vs. price of €456.25 (124.9% above fair value)
Industry Position: 78.4% above the Semiconductors median (#170 of 1011)
No single metric tells the full story. See the WBO:AMD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Micro Devices designs a variety of digital semiconductors for markets such as PCs, gaming consoles, data centers (including artificial intelligence), industrial, and automotive applications. AMD's traditional strength was in central processing units and graphics processing units used in PCs and data centers. However, AMD is emerging as a prominent player in AI GPUs and related hardware. Additionally, the firm supplies the chips found in prominent game consoles such as the Sony PlayStation and Microsoft Xbox.
80GF Score
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