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 considered overvalued based on its high valuation ratios, including a P/E ratio of 81, an EV to EBITDA of 31.34, and a PEG ratio of 0.99. In comparison, NVIDIA Corp., which is rated attractive, has a P/E of 47.72, while QUALCOMM, Inc. is very attractive with a P/E of 14.62, highlighting the relative overvaluation of AMD.
Despite its high valuation, AMD has shown strong performance with a year-to-date return of 112.04%, significantly outperforming the S&P 500's return of 16.30%. This suggests that while the stock may be overvalued, investor sentiment remains strong, driving its price higher despite the elevated valuation metrics.