Advanced Micro Devices

Methodology

AMD's competitive position in CPUs and GPUs creates volatile earnings as market share shifts between Intel and NVIDIA. Data center and AI chip opportunities provide growth potential, but semiconductor cycles and competitive dynamics make earnings unpredictable. This can produce misleading results during rapid share shifts—normalized competitive position assumptions work better than spot earnings.

Methodology

AMD's PEG fluctuates dramatically based on perceptions of competitive positioning against Intel and NVIDIA. During share gain periods PEG appears attractive; when competition intensifies it expands quickly. Valuation is highly sensitive to product cycle success and data center adoption, making PEG useful primarily for relative comparisons versus absolute valuation.

Methodology

AMD doesn't pay dividends and reinvests all capital into R&D to compete with larger, better-resourced rivals, making PEGY identical to PEG. Investors bet purely on ability to gain and maintain CPU and GPU market share through superior product execution rather than seeking any capital returns.