Is Advanced Micro Devices, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Advanced Micro Devices, Inc. has moved from expensive to very expensive. The company is currently overvalued, as indicated by its high P/E ratio of 81, a Price to Book Value of 3.29, and an EV to EBITDA of 31.34. In comparison to peers, NVIDIA Corp. has a more attractive P/E of 47.72 and EV to EBITDA of 41.13, while Broadcom Inc. also shows a high P/E of 82.00, reinforcing AMD's relative overvaluation.
Despite its strong recent performance, with a year-to-date return of 109.39% compared to the S&P 500's 15.47%, the high valuation ratios suggest that the stock may not sustain such growth in the long term.