On July 24, 2026, Advanced Micro Devices Inc AMD shares fell 3.3%, closing at $521.95. Over the past 52 weeks, the stock has ranged from a low of $149.22 to a high of $584.73, highlighting significant volatility and investor interest.
- GF Valueâ„¢ verdict: Current price is $521.95, while GF Valueâ„¢ estimates fair value at $244.16, indicating the stock is 113.8% overvalued.
- GF Scoreâ„¢: AMD has a score of 79/100, which is considered above average and suggests solid fundamentals.
- Most notable signal: In the last three months, insiders have sold $158.1 million worth of shares, indicating a potential lack of confidence in the current valuation.
Is AMD Overvalued or Undervalued?
According to the GF Valueâ„¢, Advanced Micro Devices Inc AMD is significantly overvalued at its current price of $521.95 compared to the estimated fair value of $244.16. This valuation discrepancy of 113.8% suggests a substantial margin of safety for potential investors, as the stock may be trading well above its intrinsic value. The GF Valuation label classifies AMD as significantly overvalued, raising concerns about the sustainability of its price levels.
When a stock is identified as overvalued, it implies increased risk for investors, particularly in the context of market corrections or changes in investor sentiment. Such risks could lead to a decrease in share price, aligning it more closely with its intrinsic value. Therefore, while AMD has shown remarkable growth in recent years, this valuation caution should be taken into consideration.
How Does AMD's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 171.1x | 98.0x |
| Forward P/E | 70.2x | - |
The current P/E (TTM) ratio of 171.1x is significantly above the 5-year median P/E of 98.0x, indicating that AMD is trading well above its historical valuation levels. This analysis aligns with the GF Valueâ„¢ verdict that the stock is overvalued, further substantiating the concerns about its current price relative to its earnings potential.
What Does AMD's GF Scoreâ„¢ Tell Us?
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 79/100 |
| Financial Strength | 9/10 |
| Profitability | 7/10 |
| Growth | 10/10 |
| Valuation | 1/10 |
| Momentum | 6/10 |
The GF Scoreâ„¢ of 79/100 indicates that AMD possesses strong fundamentals, particularly highlighted by its financial strength rating of 9/10 and a perfect growth rating of 10/10. However, the valuation ranking of 1/10 suggests significant concerns regarding its current price compared to its intrinsic value. Overall, while AMD is performing well in terms of growth and financial stability, the extremely low valuation score indicates that investors may be paying too much for the stock at this time.
What Are Insiders Doing with AMD Stock?
In recent months, insider activity has shown a trend of selling, with insiders offloading $158.1 million in shares without any reported buying. This pattern often indicates a lack of confidence in the current stock price or future performance, suggesting that insiders may believe the shares are overvalued at their current levels. The absence of insider buying could be interpreted as an additional red flag for prospective investors.
What This Means for Investors
Based on the analysis, Advanced Micro Devices Inc AMD is currently overvalued according to the GF Valueâ„¢ assessment, which estimates a fair value of $244.16 compared to the current price of $521.95. This significant overvaluation, compounded by recent insider selling, raises concerns about the sustainability of the stock's price and potential risks for investors.
For the complete analysis, visit the Advanced Micro Devices Inc AMD stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is AMD's GF Scoreâ„¢?
AMD's GF Scoreâ„¢ is 79/100, indicating above-average fundamentals and potential for long-term returns based on historical performance.
Is AMD overvalued or undervalued?
AMD is considered overvalued, with a GF Valueâ„¢ of $244.16 compared to the current price of $521.95, which is a significant premium.
What is AMD's P/E ratio?
AMD's P/E (TTM) ratio is 171.1x, which is significantly higher than its 5-year median P/E of 98.0x, indicating that the stock is trading at elevated valuation levels historically.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
