Historical teaching case · prepared as of 2026-08-05 · not maintained to track the company · educational material, not investment advice · capital at risk

AMDAdvanced Micro Devices, Inc.$482·$786bnMIFP openimplied 41.5%base $139-71.1%

Workbench

Draft matches publish

Revenue buildup

5y growth 41.5%summary

Revenue by segment, in millions. Select a row to edit its growth path — the group row opens every segment.

Segment	FY25A	FY26	FY27	FY28	FY29	FY30	FY31	FY32	FY33	FY34	FY35	FY36	FY37	FY38	FY39	FY40	FY41	FY42	FY43	FY44	FY45	FY46	FY47	FY48	FY49	FY50	growth
Data Center	16,635	30,316	58,385	84,495	120,827	169,472	216,925	264,648	309,638	349,891	384,880	415,671	442,689	464,824	483,416	497,919	—	—	—	—	—	—	—	—	—	—	59.1%
Client and Gaming	14,550	16,073	17,038	18,571	20,057	21,260	22,323	23,328	24,261	25,231	26,115	27,029	27,839	28,675	29,535	30,421	—	—	—	—	—	—	—	—	—	—	7.9%
Embedded	3,454	3,829	4,365	4,889	5,329	5,702	6,044	6,346	6,631	6,897	7,172	7,424	7,683	7,914	8,151	8,396	—	—	—	—	—	—	—	—	—	—	10.5%
Group revenue	34,639	50,218	79,787	107,954	146,213	196,434	245,291	294,322	340,530	382,019	418,167	450,123	478,212	501,412	521,103	536,736	—	—	—	—	—	—	—	—	—	—	41.5%

Operating economics

5y avg margin 27.2%summary

Operating margin, per cent of revenue. Tax and reinvestment follow below; the terminal assumptions sit on the premises panel.

Line	FY26	FY27	FY28	FY29	FY30	FY31	FY32	FY33	FY34	FY35	FY36	FY37	FY38	FY39	FY40	FY41	FY42	FY43	FY44	FY45	FY46	FY47	FY48	FY49	FY50	avg margin	Long-run
Operating margin	17.9	25.6	28.2	30.9	33.4	34.5	35.3	35.8	36.1	36.2	36.3	36.2	36.2	36.1	36.0	—	—	—	—	—	—	—	—	—	—	27.2%	36.0%

Tax & reinvestment

year-5 investment 15,418m

Cash tax as a share of operating profit; capital spend and working capital as net investment per unit of new sales — the rate the model charges against each year's revenue growth. Select a row to edit its annual path.

Line	FY26	FY27	FY28	FY29	FY30	FY31	FY32	FY33	FY34	FY35	FY36	FY37	FY38	FY39	FY40	FY41	FY42	FY43	FY44	FY45	FY46	FY47	FY48	FY49	FY50	Long-run driver
Cash tax rate	16.3%	19.3%	19.4%	19.5%	19.6%	19.6%	19.7%	19.7%	19.7%	19.7%	19.7%	19.7%	19.7%	19.7%	19.7%	—	—	—	—	—	—	—	—	—	—	19.7%
Capital spend	7.4%	2.7%	4.3%	4.7%	5.7%	6.7%	7.0%	7.1%	9.1%	11.2%	13.1%	14.9%	17.6%	21.0%	24.4%	—	—	—	—	—	—	—	—	—	—	24.4%
Working capital	10.0%	25.0%	25.0%	25.0%	25.0%	25.0%	25.0%	25.0%	25.0%	25.0%	25.0%	25.0%	25.0%	25.0%	25.0%	—	—	—	—	—	—	—	—	—	—	25.0%

What the assumptions imply

does not price out

Computed from the sections above and the premises panel — nothing here is editable. The walk runs to the highlighted crossover column — the first year the assumptions justify today's market price — and out to the 25-year ceiling when they never do, growing and shrinking as edits move the crossover.

Millions unless stated	FY26	FY27	FY28	FY29	FY30	FY31	FY32	FY33	FY34	FY35	FY36	FY37	FY38	FY39	FY40	FY41	FY42	FY43	FY44	FY45	FY46	FY47	FY48	FY49	FY50
Revenue
Group revenue	50,218	79,787	107,954	146,213	196,434	245,291	294,322	340,530	382,019	418,167	450,123	478,212	501,412	521,103	536,736	—	—	—	—	—	—	—	—	—	—
Revenue growth	45.0%	58.9%	35.3%	35.4%	34.3%	24.9%	20.0%	15.7%	12.2%	9.5%	7.6%	6.2%	4.9%	3.9%	3.0%	—	—	—	—	—	—	—	—	—	—
Operating profit
Operating profit	8,982	20,397	30,398	45,242	65,607	84,650	103,758	121,781	137,727	151,498	163,245	173,305	181,357	188,256	193,453	—	—	—	—	—	—	—	—	—	—
Operating margin	17.9%	25.6%	28.2%	30.9%	33.4%	34.5%	35.3%	35.8%	36.1%	36.2%	36.3%	36.2%	36.2%	36.1%	36.0%	—	—	—	—	—	—	—	—	—	—
Taxes	1,460	3,928	5,882	8,813	12,859	16,617	20,399	23,967	27,118	29,830	32,143	34,106	35,691	37,030	38,052	—	—	—	—	—	—	—	—	—	—
Operating profit after tax	7,522	16,468	24,516	36,429	52,748	68,033	83,360	97,815	110,608	121,668	131,102	139,198	145,666	151,226	155,400	—	—	—	—	—	—	—	—	—	—
Cash flow
Investment	2,711	8,191	8,253	11,363	15,418	15,488	15,690	14,833	14,148	13,086	12,175	11,208	9,883	9,058	7,723	—	—	—	—	—	—	—	—	—	—
Free cash flow	4,811	8,278	16,263	25,066	37,330	52,546	67,670	82,982	96,461	108,582	118,927	127,991	135,783	142,169	147,678	—	—	—	—	—	—	—	—	—	—
Returns	terminal return on new capital 13.6%
Reinvestment rate	36.0%	49.7%	33.7%	31.2%	29.2%	22.8%	18.8%	15.2%	12.8%	10.8%	9.3%	8.1%	6.8%	6.0%	5.0%	—	—	—	—	—	—	—	—	—	—
Return on new capital — incremental ROIC	—	109.2%	97.5%	104.8%	105.8%	98.7%	97.7%	97.5%	90.4%	84.5%	77.5%	72.2%	65.4%	61.4%	54.0%	—	—	—	—	—	—	—	—	—	—
Present value
Discounted free cash flow	4,236	6,419	11,105	15,072	19,767	24,501	27,785	30,004	30,713	30,444	29,363	27,827	25,997	23,969	21,925	—	—	—	—	—	—	—	—	—	—
Cumulative present value	4,236	10,655	21,760	36,833	56,599	81,100	108,886	138,890	169,603	200,047	229,410	257,237	283,234	307,203	329,128	—	—	—	—	—	—	—	—	—	—
Implied equity value	60,770	113,607	154,694	208,765	274,035	327,173	373,875	412,484	442,067	464,171	480,364	492,296	500,354	506,254	509,868	—	—	—	—	—	—	—	—	—	—

AMD

Advanced Micro Devices, Inc.

Information Technology·USD·GM-2·FY2025 base·as of 2026-08-05

Cyclical recoveryMed convictionAi cycle pricedExecution riskMargin pressureChina demand

What the market expects

MIFPOpenmodel not yet priced out

Implied growth41.5%rev CAGR priced in

Implied op margin33.4%year-5 priced in

Market price$482mcap $786bn

The analyst answers

Base case$139-71.1% vs mkt

Upside$390-19.0%

Downside$27-94.4%

The market

The analyst

Yours