Is Advanced Micro Devices, Inc. overvalued or undervalued?

As of 26 September 2025, the valuation grade for Advanced Micro Devices, Inc. has moved from fair to expensive. The company is currently overvalued based on its high valuation ratios, including a P/E ratio of 81, an EV to EBITDA of 31.34, and a Price to Book Value of 3.29. In comparison to its peers, NVIDIA Corp. has a more attractive P/E ratio of 47.72, while Broadcom Inc. also carries an expensive valuation with a P/E of 82.00.
Despite a strong performance over the last three years with a return of 140.51%, which outpaced the S&P 500's 81.77%, the recent one-year return of -4.79% significantly lags behind the S&P 500's 15.64%. This discrepancy further supports the conclusion that Advanced Micro Devices, Inc. is currently overvalued.