Is Advanced Micro Devices, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Advanced Micro Devices, Inc. moved from expensive to very expensive. The company appears to be overvalued 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 suggest that the stock is trading at a significant premium compared to its earnings growth potential.
When compared to peers, NVIDIA Corp. has a more attractive P/E ratio of 47.72, while Broadcom Inc. shows an expensive P/E of 82.00. Additionally, Micron Technology, Inc. stands out with a much lower P/E of 25.58, indicating a more favorable valuation in the industry. Over the past year, Advanced Micro Devices has delivered a stock return of 64.83%, significantly outperforming the S&P 500's return of 16.90%, reinforcing the perception of its high valuation.