Is Advanced Micro Devices, Inc. overvalued or undervalued?

As of 31 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 ratio of 31.34. 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 the overvaluation, Advanced Micro Devices has shown impressive returns, with a year-to-date return of 114.96%, significantly outperforming the S&P 500's 16.30% during the same period. This strong performance, however, does not mitigate the concerns regarding its high valuation metrics relative to its peers.