AMD: Its Overvaluation Doesn’t Detract Too Much

  • Advanced Micro Devices is overvalued, but its strong performance in other areas and presence in a high-growth sector mitigate the poor valuation.
  • AMD is expanding its operations in the global PC market, original equipment manufacturing partnerships, gaming, and commercial markets.
  • In 2024, AMD plans to release Zen 4 core architecture, Zen 5 cores, and the Radeon RX 7600 XT GPU, among other advancements.
  • My analyst rating for the firm is a Hold because I believe other AI companies deserve a larger allocation.

Advanced Micro Devices (NASDAQ:AMD) is significantly overvalued, in my opinion, even when considering the P/E ratio without non-recurring items, which paints a more realistic picture of the firm at a ratio of almost 100 compared to over 1,100. However, because the company is excelling