AMD Stock Soars to Yearly Highs But Faces Risks of Overvaluation and Volatility
- Advanced Micro Devices (AMD) stock has seen a significant 73% share price rise in recent months, trading at yearly highs
- According to valuation models, AMD stock currently appears overvalued by about 24% compared to intrinsic value
- AMD has a high beta, meaning its share price is volatile and could swing lower or higher from current levels
- AMD is expected to see high earnings growth over the next few years, indicating optimistic future potential
- For current AMD shareholders, it may be a good time to consider selling given the overvaluation; for potential investors, it may be better to wait for a pullback toward fair value