Advanced Micro Devices Inc. (NASDAQ:AMD)

Price to earnings (P/E) ratio

The P/E ratio displays significant volatility and a general rising trend from March 2020 through mid-2023. Initial values are missing, but from March 2021 onward, the ratio fluctuates between approximately 34 and 50 until the end of 2022. There is a marked spike to very high levels above 300 and even reaching over 800 between early and mid-2023, followed by a gradual decrease through 2024 into mid-2025. This pattern indicates periods of substantial market optimism and valuation surges, subsequently followed by corrections or adjustments downward, reflecting possibly changing earnings performance or market sentiment.

Price to operating profit (P/OP) ratio

The P/OP ratio follows a somewhat similar volatility pattern as the P/E ratio. Starting from March 2021, it decreases from around 76 to the high 30s by early 2022, showing an improvement in operating profit relative to price. Thereafter, it experiences a sharp spike mid-2023, with values climbing beyond 700 and 780, indicating a moment of high valuation relative to operating profit. Subsequently, there is a strong downward trend through 2023 and 2024, settling around mid-60s and below by mid-2025. The movements suggest fluctuations in operating profitability margins or market valuation standards during these periods.

Price to sales (P/S) ratio

The P/S ratio shows a generally downward trend from early 2021 through late 2022, dropping from around 10.6 to below 4.5, indicating improved revenue value or more conservative pricing by the market. After this decline, there is a moderate increase beginning early 2023, peaking near 12 around the first quarter of 2024 before stabilizing around 7 to 9 by mid-2025. This pattern may reflect changes in sales growth expectations, price adjustments, or shifts in investor valuation focus on revenue.

Price to book value (P/BV) ratio

The P/BV ratio starts from relatively high levels above 20 in early 2020 and steadily declines through 2022 to levels below 3, indicating a significant reduction in market valuation relative to the company’s book value. From early 2023 onwards, the ratio climbs modestly, fluctuating between around 2 and 5, with some variability into 2025 but without returning to prior elevated levels. This trajectory suggests a revaluation of net asset value perception by the market, with a period of depressed multiples followed by partial recovery.

The data displays key financial metrics over a series of quarterly periods, highlighting the trends in share price, earnings per share (EPS), and price-to-earnings (P/E) ratio.

Share Price

The share price demonstrates notable volatility with an overall upward trajectory from early 2020 through mid-2021. It rose from $53.66 in March 2020 to above $120 by late 2021, peaking at $167.69 in December 2023. However, significant fluctuations are evident during 2022, where the price declined sharply to $58.63 in September 2022 before recovering to around $109 by mid-2023. The price then again shows volatility but maintains generally elevated levels above $100 towards the latest quarters, reaching $163.12 by June 2025.

Earnings Per Share (EPS)

EPS figures begin from March 2021 and reveal an initial growth trend, increasing from $2.06 to a peak of $3.29 in December 2021. Following this peak, there is a marked decline throughout 2022 and into early 2023, even turning negative (-$0.02) in September 2023. After this trough, EPS recovers consistently, improving quarter by quarter to reach $1.75 by June 2025. The pattern suggests a period of financial stress or operational challenges mid-cycle, followed by a substantial recovery phase.

Price-to-Earnings (P/E) Ratio

The P/E ratio aligns with the EPS and share price trends but shows extreme variability. Initial ratios in 2021 range around 34 to 50, indicating moderate valuation. However, from mid-2022 onward, as EPS declined sharply, the P/E ratio escalated dramatically, peaking at an anomalous 839.13 in September 2023, reflecting the very low or negative EPS during that period. Subsequent quarters show a downward trend in the P/E ratio, decreasing to approximately 93.41 by June 2025, coinciding with EPS recovery and stabilization in share prices. These fluctuations in P/E illustrate market sensitivity to earnings performance volatility.

Overall, the data reveals a phase of growth and strong market performance elevating valuation metrics until late 2021, followed by a challenging period characterized by deteriorating earnings and share price corrections in 2022 and early 2023. The latter part of the timeline indicates a positive turnaround in earnings and stabilization in share price, contributing to a normalization of valuation multiples. The interplay between these metrics shows the company's financial performance and market perception experienced significant disruption, succeeded by a recovery phase toward mid-2025.

The analysis of the quarterly financial data reveals notable trends in share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over the reported periods.

Share Price

The share price exhibited a general upward trajectory from March 2020 through the end of 2021, rising from $53.66 to a peak of $122.28 in September 2021. It then experienced volatility and a decline into 2022, falling to $58.63 by September 2022. Subsequently, the share price showed recovery, reaching a high of $167.69 in December 2023, followed by fluctuating but generally stable levels around $140 before ending at $163.12 in June 2025. This pattern indicates periods of strong investor confidence punctuated by phases of market correction or consolidation.

Operating Profit per Share

Operating profit per share values are not available before March 2021, after which a steady increase is observed, rising from $1.13 to $3.04 by March 2022. Thereafter, operating profit per share decreases sharply to $0.78 by December 2022 and further declines below zero in mid-2023, indicating a loss period. From late 2023 onwards, there is a gradual recovery seen with the metric returning to positive territory and reaching $1.65 by March 2025, followed by a slight decrease to $1.40 by June 2025. This fluctuation suggests variability in operational efficiency or cost management across these quarters.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio, reported from March 2021 onward, starts at a high level of 75.77 and decreases to a range between approximately 36 and 55 during the following year, suggesting improving valuation relative to operating profits. However, from early 2023, the ratio spikes dramatically, reaching extreme values above 600 and even 700, indicating that share prices were disproportionately high relative to operating profits or that operating profits temporarily collapsed. The ratio subsequently declines sharply toward more moderate levels below 120 by mid-2025, reflecting a recalibration of market valuation aligned with improving operational profitability.

In summary, the data shows a share price that is moderately correlated with operating performance, though periods of misalignment occur, especially during 2023 when operating profits decline while share prices display volatility. The recovery trend in both operational results and valuation ratios post-2023 suggests a phase of stabilization and renewed growth potential.

The share price exhibited considerable volatility over the analyzed periods. Initially, it showed an upward trend from March 2020 through December 2021, peaking around late 2021. Subsequently, there was a notable decline through 2022, hitting a low in September 2022. Afterward, the share price experienced recovery and further growth, reaching another high point by December 2023. In 2024, the price remained relatively stable with moderate fluctuations, before again showing increased variability in the last two quarters.

Sales per share data begins from December 2020 and displays a consistent upward trajectory. From an initial value of 8.06 US dollars, it rose incrementally each quarter, reaching 18.24 US dollars by June 2025. This steady increase suggests growth in revenue generated per share over the observed timeframe.

The Price-to-Sales (P/S) ratio demonstrated a general declining trend from December 2020 through September 2022, starting above 10 and dropping to approximately 4.14. This decline implies either a relative fall in the share price compared to sales or an increase in sales outpacing the price gains during this interval. After this trough, the P/S ratio rebounded significantly, peaking near 11.95 by December 2023, before entering a downward trend again through mid-2025.

Overall, the data indicates that while sales per share consistently improved, reflecting underlying business growth, the share price and valuation multiples experienced greater volatility. The fluctuation in the P/S ratio, especially the sharp decline and subsequent increase around 2022-2023, points to periods of significant market reassessment of the company's valuation relative to its sales performance.

Share Price

Strong growth from March 2020 to December 2021; followed by a notable decline through 2022; recovery and new highs by end of 2023; moderate fluctuations throughout 2024 and early 2025.

Sales Per Share

Consistent and steady growth starting late 2020 through mid-2025, nearly doubling over the period.

Price-to-Sales Ratio

Initial decline from above 10 to around 4 in late 2022; strong rebound to almost 12 by end of 2023; downward trend resumes in 2024 and 2025.

The share price demonstrates notable volatility with an overall upward trend interrupted by significant fluctuations. Initially, the share price increased steadily from $53.66 in the first quarter of 2020 to a peak of $122.28 in the third quarter of 2021. Subsequent to this peak, the price declined sharply to as low as $58.63 in the third quarter of 2022, indicating substantial market correction or volatility. Following this decline, the price rebounded and experienced considerable growth, reaching a notable high of $167.69 by the fourth quarter of 2023. The price then exhibited moderate declines and fluctuations through the first half of 2025, ending at $163.12. These movements suggest phases of strong investor confidence mixed with corrections likely influenced by market conditions or company performance factors.

The book value per share (BVPS) presents a distinct pattern of growth with a substantial leap occurring between the first quarter of 2021 and the first quarter of 2022. Prior to 2022, BVPS rose progressively from $2.59 to $6.25, indicating steady accumulation of net asset value. However, starting in the first quarter of 2022, there was a dramatic increase in BVPS to above $34, maintaining a relatively stable range with modest increases thereafter, reaching $36.77 by the second quarter of 2025. This sudden increase in book value per share may suggest a significant equity event such as a recapitalization, asset revaluation, or acquisition, fundamentally enhancing the company's net asset base.

The price-to-book value (P/BV) ratio illustrates the relationship between market valuation and accounting value over time. Early in the sample period, the P/BV ratio was extremely high, peaking at 27.03 in the second quarter of 2020, which reflects that the market price was a large multiple of the book value. This high ratio diminished significantly following the steep rise in book value per share, falling to below 3 by the first quarter of 2022, suggesting that the market price adjusted relative to the increased book value. Thereafter, the ratio fluctuated modestly between approximately 1.7 and 4.85, indicating periods of relative market undervaluation or moderate premium compared to book value. The lower P/BV ratio post-2022 compared to the early period points to a recalibration of market expectations in light of the enlarged book value, with the market price reflecting a closer alignment to underlying net assets. The increases in P/BV from the third quarter of 2023 onwards denote renewed investor optimism or valuation multiples expansion.

In summary, the data reveals three key observations: an initial period of growing share price with relatively modest book value growth and very high P/BV ratios; a sharp transition marked by a dramatic increase in book value that redefined the valuation base; and subsequently, a phase of share price volatility accompanied by adjusted and more stable P/BV ratios, reflecting a changed market perception after the book value revaluation. The trends indicate dynamic market reactions to fundamental changes in the company's equity base, with valuation metrics normalizing after the structural shift in book value per share.