Is Advanced Micro Devices, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Advanced Micro Devices, Inc. moved from expensive to very expensive. The company is currently overvalued, with a P/E ratio of 81, an EV to EBITDA ratio of 31.34, and a PEG ratio of 0.99. In comparison to peers, NVIDIA Corp. has a more attractive P/E ratio of 47.72, while Broadcom Inc. is also expensive with a P/E of 82.00.
Despite its high valuation, Advanced Micro Devices has significantly outperformed the S&P 500 over various periods, including a remarkable 112.04% year-to-date return compared to the S&P 500's 16.30%. This performance highlights the market's optimism, but the high valuation ratios suggest caution for potential investors.