AMD’s Forward P/E Trades 20% Below Long-Term Median
Deutsche Bank analysts say AMD’s forward P/E ratio sits 20% below its long-term median, marking the stock as a significant undervaluation versus historical norms. That positions AMD among the cheapest AI chipmakers based on two-year forward earnings multiples.
1. AMD's Valuation Discount
Analysts at Deutsche Bank highlight that AMD’s forward price-to-earnings ratio is roughly 20% below its long-term median, signaling a sizable discount compared to its historical trading range. This gap suggests the market is underpricing AMD’s projected earnings growth over the next two years.
2. Peer Comparison and Sector Valuation
AMD joins Nvidia, Broadcom and Marvell as AI chipmakers trading below historical valuation norms, according to the same metrics. In contrast, semiconductor equipment firms such as KLA, ASML and Applied Materials have seen share prices jump 29–45% in 2026 and now trade at premiums over their long-term medians.