Is Advanced Micro Devices Stock Overvalued or Undervalued?

Is Advanced Micro Devices Stock Overvalued or Undervalued?
A chip the size of a coin, developed by AMD is displayed during a press conference held in Taipei, Taiwan, on May 24, 2011. Sam Yeh/AFP via Getty Images
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Advanced Micro Devices Inc. shares have outperformed the S&P 500 in 2021, generating a year-to-date total return of 581.4 percent.

But after AMD’s huge 2021 performance, investors may be wondering if there’s any value left in the stock heading into 2022.

Earnings

A price-to-earnings ratio (PE) is one of the most basic fundamental metrics for gauging a stock’s value. The lower the PE, the higher the value.