Highly Regarded

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

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

194% Premium TTM fundamentals · sector averages from covered peers

AMD trades at 187.0× TTM earnings — a 194% premium to its Technology sector average of 63.7× in our coverage.

The Numbers

P/E (TTM)

187.0×

Sector avg: 63.7×

P/S (TTM)

23.3×

Sector avg: 17.1×

Market Cap

$808.11B

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 $495.65 187.0×
NVDA $202.77 50.2×
AAPL $333.66 42.2×
MSFT $393.89 24.6×
AVGO $370.92 77.8×
INTC $94.98 —
CSCO $111.92 43.2×
ORCL $126.41 29.3×
PLTR $132.35 307.8×
TXN $283.97 52.1×
QCOM $171.79 34.7×
CRM $170.83 24.8×
ADBE $237.22 14.2×

Is the Premium Justified?

July 12, 2026

Advanced Micro Devices Inc. trades at a P/E ratio of 210.5x, a significant premium compared to the technology sector average of 76.4x. This elevated multiple largely reflects the market's high expectations for AMD's future growth, particularly its strategic positioning in the burgeoning artificial intelligence (AI) and data center markets. Investors are anticipating substantial revenue and earnings expansion as demand for high-performance computing and AI accelerators continues to surge. While specific recent earnings data was not provided, the company's competitive advancements against rivals and its expanding portfolio of processors for various high-growth applications likely fuel this optimistic outlook. The premium valuation suggests that the market is pricing in a strong trajectory for market share gains and technological leadership in critical, rapidly evolving segments of the semiconductor industry.

Sources

Frequently Asked Questions

Is AMD overvalued or undervalued?
On trailing-twelve-month earnings, AMD trades at 187.0x versus a Technology sector average of 63.7x in our coverage — a 193.5% 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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AVGO NVDA TXN INTC ADBE QCOM