--- title: "AMD stock sends valuation signal for first time in 3 years" type: "News" locale: "en" url: "https://longbridge.com/en/news/281392689.md" description: "AMD stock has reset its valuation below recent annual figures for the first time in three years, with a price-to-earnings ratio of about 76. This shift indicates a change in investor sentiment, as concerns grow about AMD's ability to compete with Nvidia in AI. Despite a recent stock return of 89.40% over the past year, AMD's valuation remains higher than the semiconductor industry median. Wall Street's consensus price target for AMD is $289.61, suggesting a potential upside of 43.38%." datetime: "2026-03-30T17:47:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/281392689.md) - [en](https://longbridge.com/en/news/281392689.md) - [zh-HK](https://longbridge.com/zh-HK/news/281392689.md) --- # AMD stock sends valuation signal for first time in 3 years **Advanced Micro Devices (AMD) stock** just flashed a red signal investors haven’t seen in years. For the first time in about three years, the stock’s valuation has effectively reset below recent annual figures, underscoring a clear shift in sentiment. The semiconductor giant’s price-to-earnings ratio has slipped to about **76**, per GuruFocus, behind year-end readings of **77 in 2022**, **278 in 2023**, **120 in 2024**, and **80 in 2025**. That obvious break in the pattern points to investors being clearly in "show-me" mode in the AI trade, even though demand has held up remarkably well. As of **March 30, 2026**, AMD stock is trading around **$201.99**, according to Yahoo Finance. That incredible shift comes as questions start to build around execution. AMD’s latest outlook pointed to **$9.8 billion** in first-quarter sales, suggesting a quarter-over-quarter slowdown and raising doubts about whether it could catch up with Nvidia in AI. Speaking of **Nvidia (NVDA)**, it has also flashed a major valuation signal I covered, trading below the **S&P 500’s valuation** for the first time in **13 years**. At the same time, the broader investing space is changing. Tech valuations have taken a major hit as investors reassess whether the relentless AI spending will manifest into durable returns. That has made stocks like AMD a lot more sensitive to any sign of sluggishness. ### **AMD stock returns vs. Nvidia** - Over the past month, AMD returned 0.89%, while Nvidia returned -5.45%. - Over the past three months, AMD returned -6.05%, while Nvidia returned -12.07%. - Over the past six months, AMD returned 26.67%, while Nvidia returned -5.98%. - Over the past nine months, AMD returned 40.46%, while Nvidia returned 6.21%. - Year to date, AMD returned -5.68%, while Nvidia returned -10.17%. - Over the past year, AMD returned 89.40%, while Nvidia returned 50.37%. - Over the past three years, AMD returned 109.08%, while Nvidia returned 531.97%. - Over the past five years, AMD returned 160.94%, while Nvidia returned 1,208.04%. Source: Seeking Alpha ## **Why AMD’s valuation looks different now** AMD’s current price-to-earnings (**P/E)** ratio is telling a much different story about the stock, Investopedia explains. Simply put, the ratio essentially tells how much investors are willing to pay for **$1 of a company’s earnings**. Given AMD’s current P/E ratio of around 76, that means investors are paying up **$76 for every $1 AMD earns**. The greater the number, the more growth and optimism the market is essentially pricing in. **Related: JPMorgan delivers blunt message on interest rate cuts** AMD’s current P/E ratio is comfortably below its **10-year median of 101.53**, GuruFocus notes, and far below its year-end readings from **2022 through 2025**. So AMD stock is trading at a much lower valuation than it did during the peak of market enthusiasm. Still, that doesn’t automatically make the stock cheap. GuruFocus shows AMD’s current P/E ratio is still significantly higher than the **semiconductor industry median of 39.52**. In fact, its valuation ranks worse than **71.2% of 625 companies** in the industry. So AMD stock isn’t trading at its previously extreme multiple, but clearly, investors are still paying a meaningful premium for future growth. AMD stock resets lower as valuation drops below recent annual levels for first time.White/Getty Images for Wired ## **Wall Street price targets for AMD stock** - Wall Street’s consensus price target for AMD stock is $289.61, implying +43.38% upside, with a high estimate of $365 and a low estimate of $220. - Wells Fargo set a $345 target, implying about 70.8% upside. - UBS set a $310 target, implying about 53.5% upside. - Piper Sandler set a $300 target, implying about 48.5% upside. - Bank of America set a $280 target, implying about 38.6% upside. - Morgan Stanley set a $255 target, implying about 26.2% upside. - Goldman Sachs set a $240 target, implying about 18.8% upside. Sources: SeekingAlpha, Benzinga, Investing.com, Barron's, Tipranks ## **AMD valuation milestones** - AMD broke into the $100 billion club on Aug. 5, 2020, when the stock closed at $85.31, per MarketWatch. - By the end of 2021, AMD’s market value had surged to nearly $173.8 billion, making it a semiconductor heavyweight. - The next big jump came at the end of 2023, when AMD wrapped up the year with a market cap of nearly $238.2 billion, as AI enthusiasm reshaped the chip market. - On Feb. 29, 2024, AMD closed at above $300 billion in market value for the first time, according to Bloomberg, supercharged by an AI-fueled rally in its stock. - AMD then crossed the $400 billion mark for the first time on Oct. 24, 2025, MarketWatch noted, reaching $410 billion amid investor enthusiasm for its AI story. - As of March 27, 2026, AMD’s market cap was about $329.33 billion, according to Yahoo Finance. ## **What AMD’s chart is saying** AMD’s stock technical setup looks mostly mixed at this point. It currently trades slightly above its **20-day moving average of $200.92** and its **200-day moving average of $195.16**, per Barchart.com. Still, it remains behind its **50-day average of $213.92** and **100-day average of $217.72**. Although the long-term trend remains intact, the stock still has a ton of work to do before there’s clarity on whether investors could say short- and medium-term momentum has really turned higher. **Related: Morgan Stanley delivers stark take for gold, stock market investors** The momentum signals underscore a similar story. AMD’s **14-day RSI is 42.2**, according to Investing.com. The RSI is a simple metric that tells investors if a stock is overbought or oversold, and the current reading in the early 40s usually points to weak but not eroding momentum. Additionally, AMD’s **MACD is -1.460**, still leaning bearish as it compares short-term momentum with the bigger trend, underscoring the fact that the stock hasn’t fully shaken off the recent selling pressure. That said, near-term support sits in the **high-$190s**, Barchart.com noted, with more substantial downside support in the **mid-$190s** and the **low-$190s** if pressure builds again. On the upside, resistance begins in the **low-$200s** and strengthens as the stock rises toward the **upper-$200s, just below $210**. The more demanding ceiling sits in the **low-$210s to high-$210s**, where AMD will have to then reclaim its 50-day and 100-day moving averages. **Related: Morgan Stanley sends clear message on semiconductor stocks after selloff** _This story was originally published by TheStreet on Mar 30, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here._ ### Related Stocks - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [AMUU.US](https://longbridge.com/en/quote/AMUU.US.md) - [AMDL.US](https://longbridge.com/en/quote/AMDL.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [AMDD.US](https://longbridge.com/en/quote/AMDD.US.md) - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) ## Related News & Research - ['Buy AMD Stock,' Says Top Analyst as Strong Data Center Demand Drives Upgrade](https://longbridge.com/en/news/281601702.md) - [AI Powerhouse Firmus Rockets to $5.5 Billion Valuation with Nvidia (NVDA) Backing](https://longbridge.com/en/news/282047226.md) - [Sovran Advisors LLC Increases Stock Position in Advanced Micro Devices, Inc. $AMD](https://longbridge.com/en/news/281746324.md) - [Advanced Micro Devices, Inc. $AMD Shares Purchased by Leo Wealth LLC](https://longbridge.com/en/news/281864771.md) - [Advanced Micro Devices, Inc. $AMD is Ellsworth Advisors LLC's 9th Largest Position](https://longbridge.com/en/news/281491958.md)