Advanced Micro DevicesXTER:AMD -0.56%79 Interest Coverage is 39.89 as of Mar. 2026, which is 178% above its 10-year median of 14.36. GuruFocus rates XTER:AMD with a GF Score™ of 79/100 and a GF Value™ of €202.69 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 638 Semiconductors companies, Advanced Micro Devices ranks better than 54.86% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Advanced Micro Devices's
Operating Income
for the
three
months ended in Mar. 2026 was €1,277 Mil. Advanced Micro Devices's Interest Expense for the
three
months ended in Mar. 2026 was €-32 Mil.
Advanced Micro Devices's interest coverage for the quarter that ended in Mar. 2026 was 39.89.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Advanced Micro Devices's Interest Coverage or its related term are showing as below:
XTER:AMD'
s Interest Coverage Range Over the Past 10 Years
Min: 1.01 Med: 14.36 Max: 107.29
Current: 29.49
XTER:AMD's Interest Coverage is ranked better than 54.86% of 638
companies
in the Semiconductors industry
Industry Median: 20.225
vs XTER:AMD: 29.49
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Advanced Micro Devices Interest Coverage Related Terms
Advanced Micro Devices Interest Coverage Historical Data
* Premium members only.
The historical data trend for Advanced Micro Devices's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
XTER:AMD vs MU, INTC, TXN: Interest Coverage Comparison
For the Semiconductors subindustry, Advanced Micro Devices's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Advanced Micro Devices's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Advanced Micro Devices's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Advanced Micro Devices (XTER:AMD) has a Interest Coverage of 39.89 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Advanced Micro Devices and its competitors. This is 178% above median its historical median of 14.36. Over the past decade, Advanced Micro Devices' Interest Coverage has ranged from 1.01 to 107.29. According to the industry distribution chart, Advanced Micro Devices ranks #288 out of 638 companies in the Semiconductors industry, placing it in the top 45.1%.
Is Advanced Micro Devices' Interest Coverage too high?
Advanced Micro Devices' current Interest Coverage of 39.89 is 178% above median its 10-year median of 14.36. Over the past 10 years, this metric has ranged from a low of 1.01 to a high of 107.29. The Semiconductors industry median Interest Coverage is 20.23. Advanced Micro Devices' value of 39.89 is 97.2% above this industry median. Based on the distribution chart, Advanced Micro Devices ranks #288 out of 638 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Advanced Micro Devices has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advanced Micro Devices' Interest Coverage compare to MU and INTC?
According to the Semiconductors industry distribution chart, Advanced Micro Devices ranks #288 out of 638 companies for Interest Coverage. This puts Advanced Micro Devices in the upper half of its industry. The industry median Interest Coverage is 20.23. Advanced Micro Devices' value of 39.89 is 97.2% above this benchmark. Historically, Advanced Micro Devices' own Interest Coverage has ranged from 1.01 to 107.29 over the past decade. While the company's 10-year median is 14.36 vs. the industry median of 20.23, 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 Interest Coverage for a Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.23, based on 638 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advanced Micro Devices's current Interest Coverage of 39.89 is 97.2% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Advanced Micro Devices and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Micro Devices's current Interest Coverage is 39.89, which is 178% above median its own 10-year median of 14.36. 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 (XTER:AMD) is currently considered Significantly Overvalued. The stock's GF Value™ is €202.69, compared to a current price of €455.80 — trading 124.9% above its estimated fair value. The current Interest Coverage is 39.89, which is 178% above median its 10-year median of 14.36 and 97.2% above the Semiconductors industry median of 20.23. Advanced Micro Devices' overall GF Score™ is 79/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Advanced Micro Devices (XTER:AMD), the current Interest Coverage is 39.89 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 (XTER:AMD) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Micro Devices stock appears to be overvalued.
The current stock price of €455.80 is trading 124.9% above its estimated GF Value™ of €202.69.
GuruFocus considers Advanced Micro Devices to be Significantly Overvalued.
Key valuation signals for XTER:AMD:
Interest Coverage: 39.89 (178% above median its 10-year median of 14.36)
GF Value™: €202.69 vs. price of €455.80 (124.9% above fair value)
Industry Position: 97.2% above the Semiconductors median (#288 of 638)
No single metric tells the full story. See the XTER: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.
79GF Score
Get the complete analysis for XTER:AMD
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