Is Advanced Micro Devices, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Advanced Micro Devices, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its current P/E ratio of 81, which is significantly higher than the peer average of 47.72 for NVIDIA Corp., and its EV to EBITDA ratio of 65.34, compared to NVIDIA's 41.13. Additionally, the PEG ratio of 0.99 suggests that while growth expectations are present, they may not justify the high valuation levels.
In comparison to its peers, Broadcom Inc. also carries an expensive valuation with a P/E of 82.00, while Micron Technology, Inc. is more attractively valued at a P/E of 25.58. The recent stock performance of Advanced Micro Devices shows impressive returns, with a year-to-date return of 92.96% compared to the S&P 500's 13.30%, reinforcing the notion of strong market interest despite the valuation concerns.