Is Advanced Micro Devices Stock Halal?
Table of Contents
How much of Advanced Micro Devices’ revenue comes from haram?
AMD earns its revenue from the following revenue sources:
- Computing and Graphics:
AMD provides Central Processing Units (CPUs), Graphics Processing Units (GPUs), and Accelerated Processing Units (processing unit that integrates a CPU and a GPU onto one chip) for computational and visual data processing.
In addition, AMD offers System-on-Chips (improve system performance and energy efficiency) and Chipsets (allow microprocessors to connect to peripheral devices in a system such as storage, optical drives, and USB peripherals).
- Enterprise, Embedded, and Semi-Custom:
AMD provides Server Processors for data centers and Embedded Processor products for handling the computing needs in telecommunications, networking, security, and storage systems.
Additionally, AMD leverages its graphics and processing technology to develop semi-custom solutions for PC and gaming markets, including PlayStation and Xbox game consoles and Tesla’s infotainment systems.
The contributions from each of AMD’s revenue segments in their 2020 annual report were as follows:
Practical Islamic Finance concludes:
None of AMD’s revenue comes from anything inherently haram.
Does Advanced Micro Devices rely on interest to operate?
According to the company’s annual report for the fiscal year ended December 26, 2020 (Numbers in thousands, U.S. dollars):
Interest Income: $8,000
Total Revenue: $9,763,000
Interest Expense: $47,000
Total Expenses: $8,394,000
Interest Income / Revenue: 0.08%
Interest Expense / Total Expense: 0.56%
Practical Islamic Finance concludes:
Riba is used but not relied upon in AMD’s operations.
What is Advanced Micro Devices’ Environmental, Social, and Governance (ESG) impact?
Environment
According to AMD, since 2014, the company has reduced its energy usage by 15%, reduced greenhouse gas emissions by 23%, and water usage by 10%.
Social
In 2020, AMD contributed $15 million (USD) worth of high-performance computing systems to Lawrence Livermore National Laboratory for molecular modeling to support COVID-19 research.
In addition, AMD has a high Glassdoor rating of 4.1 out of 5.0 from over 2,900 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
AMD has a net positive ESG impact.
Comfort Rating
From AMD’s business, financial, and ESG reviews, Practical Islamic Finance rates AMD stock as: