Know the Halal Stock Screening Result of AMD, Inc.

Know-the-Halal-Stock-Screening-Result-of-AMD-Inc

Is AMD Stock Halal?

Stock – Advanced Micro Devices

Ticker– NASDAQ: AMD

Sector– Technology

Compliance Status – Halal

Advanced Micro Devices, Inc. engages in the provision of semiconductor businesses. The company is headquartered in Santa Clara, California.

To find out whether AMD is Shariah-compliant, we will use the following three criteria:

  • The business activity
  • Interest-bearing debt to company’s market capitalization
  • Interest-bearing securities to company’s market capitalization

AMD’s Business Activity

The first thing we do is to check the business activity of Advanced Micro Devices. The business activity of the company is quite simple.

AMD currently employs 12,600 full-time employees. AMD offers Central Processing Units (CPUs) Graphics Processing Units (GPUs), and Accelerated Processing Units (a processing unit that combines a CPU and a GPU onto one chip) for computational and visual data processing. The company also provides System-on-Chips (which boosts system performance and efficiency) and Chipsets (allow microprocessors to connect to peripheral devices in a system such as storage, optical drives, and USB peripherals). It offers Enterprise, Embedded, and Semi-Custom Server Processors for data centers, as well as Embedded Processor solutions for telecommunications, networking, security, and storage systems. Besides, AMD also uses its graphics and processing capabilities to provide semi-custom solutions for the PC and gaming sectors, such as PlayStation and Xbox game consoles, as well as Tesla’s infotainment systems.

Is AMD Stock Halal?

Firstly, we screen the business activities of AMD. The non-Shariah compliant business activities contribute to 0.22% of the company’s revenue. This percentage does not exceed the 5% threshold. Therefore, AMD’s revenue complies with the halal stock requirement.

Non-Islamic business activities0.22%
Revenue from questionable segments0.00%

Secondly, we screen its interest-bearing debt ratio. The debt amount should not exceed 30% of its market cap. In the case of AMD, the percentage of interest-bearing debt is 1.75% of its market cap.  So, we can conclude that it meets the criteria.

Total Interest-Bearing Debt$1.79B
36 Month Average Market Capitalization$102.25B

Finally, we screen the interest-bearing securities ratio. AMD’s interest-bearing securities account for 6.39% of its market cap. The number of securities that aim to receive interest should not exceed 30% of its market cap.  So, it meets the last criteria as well.

Cash and Interest-Bearing Securities$6.53B
36 Month Average Market Capitalization$102.25B

AMD passes all screening criteria. Although marginal interest is used, it is not relied on to run the company. Therefore, Muslim investors can comfortably invest in this growing technology stock.

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