PEG Ratio

The PEG ratio of 1.56x means the stock's price is 1.56 times its earnings growth rate, blending valuation (price-to-earnings) with expected profit growth.

Compared to sector peers, this is above the technology sector median of 1.12x, placing AMD in the 63rd percentile among those peers. The metric has been decreasing over the last eight quarters, with a year-over-year decline of -67.6% and a quarter-over-quarter drop of -0.6%. A PEG ratio still above the sector median suggests the stock carries a premium relative to peers, but the sharp downward trend indicates that earnings growth expectations have risen faster than the stock price, reducing that premium over time. This combination of above-median level with a steep decline implies a more balanced risk/reward, as earlier overvaluation has partially corrected without yet reaching a discount. This metric supports the overall NEUTRAL verdict, since the valuation is not extreme in either direction—still above the median but moving toward it.

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