Is Advanced Micro Devices, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Advanced Micro Devices, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued based on its current metrics. Key ratios include a P/E ratio of 81, an EV to EBITDA of 31.34, and a PEG ratio of 0.99, which suggests that the stock may be priced lower relative to its growth potential compared to its peers.
In comparison to its peers, NVIDIA Corp. has a P/E of 47.72 and an EV to EBITDA of 41.13, while Micron Technology, Inc. shows a more attractive P/E of 25.58 and an EV to EBITDA of 10.17. These comparisons reinforce the notion that Advanced Micro Devices, Inc. is positioned favorably within its industry. Notably, the stock has outperformed the S&P 500 year-to-date with a return of 30.74% compared to the index's 12.22%, further supporting the view that the company is undervalued.