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, 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, NVIDIA Corp., which has a P/E of 47.72 and an EV to EBITDA of 41.13, is considered attractive, while Broadcom Inc. is classified as expensive with a P/E of 82.00.
Despite its strong performance, with a year-to-date return of 107.01% compared to the S&P 500's 16.30%, the elevated valuation ratios suggest that Advanced Micro Devices, Inc. may not sustain its current price levels. The company’s PEG ratio of 0.99 also indicates that, while growth expectations are present, the current price may not justify the high valuation.