Highly Regarded

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

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

224% Premium TTM fundamentals · sector averages from covered peers

AMD trades at 208.2× TTM earnings — a 224% premium to its Technology sector average of 64.2× in our coverage.

The Numbers

P/E (TTM)

208.2×

Sector avg: 64.2×

P/S (TTM)

26.0×

Sector avg: 17.4×

Market Cap

$899.50B

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 $551.70 208.2×
NVDA $195.52 48.4×
AAPL $312.73 39.6×
MSFT $386.79 24.2×
AVGO $373.72 78.3×
INTC $122.14 —
CSCO $113.98 44.0×
ORCL $143.82 33.3×
PLTR $132.53 308.2×
TXN $303.53 55.7×
QCOM $186.38 37.7×
CRM $165.63 24.0×
ADBE $218.11 13.1×

Is the Premium Justified?

July 6, 2026

Advanced Micro Devices (AMD) trades at a P/E of 208.8x, significantly above the Technology sector average of 76.3x. This premium is largely driven by strong performance in its Data Center segment, which saw revenue increase 57% year-over-year in Q1 2026, fueled by accelerating demand for AI infrastructure. The company reported Q1 2026 revenue of $10.3 billion, beating estimates, with non-GAAP diluted EPS of $1.37. AMD's Q2 2026 revenue guidance projects approximately 46% year-over-year growth, with non-GAAP gross margin expected to be around 56%. Customer engagement for its MI450 Series and Helios platforms is strengthening, with forecasts exceeding initial expectations. While Q1 non-GAAP operating margin was 25%, it remains below the long-term goal of over 35%, indicating potential for further earnings conversion as AI demand scales.

Sources

Frequently Asked Questions

Is AMD overvalued or undervalued?
On trailing-twelve-month earnings, AMD trades at 208.2x versus a Technology sector average of 64.2x in our coverage — a 224.1% 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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