Is AMD (Advanced Micro Devices, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, AMD is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (1.27% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (3.00% vs ≤33% threshold).

Advanced Micro Devices (AMD) is a global semiconductor giant that designs high-performance computing and graphics solutions . Best known for its Ryzen processors that power personal computers and EPYC chips for data centers, AMD is the primary rival to Intel in the CPU market. The company also produces Radeon graphics cards and creates the custom chips found in major gaming consoles like the PlayStation 5 and Xbox Series X. For Muslim investors, AMD is currently classified as Halal, having passed all four key AAOIFI screening metrics. This 'clean sweep' indicates that the company's core business of selling hardware is permissible, and its financial management aligns with Islamic principles. You can invest in AMD without the need for purification, as its interest-based income is virtually non-existent. Financially, AMD stands out for its remarkably low leverage, carrying a debt-to-market cap ratio of only 1.3%, which is well below the 33 % limit set by scholars. This low debt burden makes it a safer, more ethical choice compared to highly leveraged competitors. Additionally, the company holds a modest amount of cash and interest-bearing securities relative to its size, ensuring it doesn't hoard cash in impermissible accounts. While AMD is fully compliant today, investors should always monitor quarterly reports. As tech companies grow, they sometimes accumulate large cash reserves that generate interest income or take on debt for acquisitions. However, given AMD's current trajectory and financial discipline, it remains a robust option for a Shariah-compliant portfolio. Advanced Micro Devices, Inc. operates in the Technology sector under the Semiconductors industry and is headquartered in Santa Clara, CA, US. The company is led by CEO Lisa T. Su and employs approximately 28,000 people.

AMD was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. AMD passed 4 of these 4 screens.

AMD has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.

AMD was last screened on 2026-02-24. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.