Highly Regarded

Is Advanced Micro Devices Inc. (AMD) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Technology sector peers in our coverage

165% Premium TTM fundamentals · sector averages from covered peers

AMD trades at 212.1× TTM earnings — a 165% premium to its Technology sector average of 80.1× in our coverage.

The Numbers

P/E (TTM)

212.1×

Sector avg: 80.1×

P/S (TTM)

26.5×

Sector avg: 21.1×

Market Cap

$916.55B

EPS (TTM): $2.65

Revenue (TTM)

$34.64B

Net income: $4.33B

Technology Peer Comparison

How AMD's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
AMD This page $562.16 212.1×
NVDA $217.23 53.8×
AAPL $341.95 43.3×
MSFT $539.24 33.7×
AVGO $344.31 72.2×
PLTR $200.48 466.2×
INTC $95.36 —
CSCO $109.85 42.4×
ORCL $134.50 31.1×
TXN $279.15 51.2×
CRM $246.71 35.8×
QCOM $178.39 36.0×
ADBE $251.65 15.1×

Is the Premium Justified?

October 4, 2026

Advanced Micro Devices Inc. commands a P/E of 239.1x, significantly above the technology sector average of 91.7x. This premium valuation is largely driven by the company's explosive growth in the data center and AI segments. In Q2 2026, AMD's total revenue surged 50% year-over-year to $11.5 billion, with its Data Center segment revenue more than doubling, primarily due to strong demand for Instinct AI accelerators and EPYC server processors. The company anticipates server revenue growth exceeding 80% in the second half of 2026 and over 70% for the full year 2027. Analyst estimates project AMD's earnings to nearly double in 2026 and rise by approximately 111% in 2027, reflecting high market expectations for its role in the expanding AI infrastructure.

Sources

Frequently Asked Questions

Is AMD overvalued or undervalued?
On trailing-twelve-month earnings, AMD trades at 212.1x versus a Technology sector average of 80.1x in our coverage — a 164.9% premium. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing AMD with its own Technology peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Technology names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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