Lots of room if they break Intel's monopoly though.
Intel had 16 billion revenue in 2018 and AMD "profits" from TSMC and their clients ( eg. Apple, Nvidia,... )
In the server market, it seems that they are partially breaking Intel's monopoly. Today's news in Intel won't change that perspective. P/e is also a bad ratio if a company invests a lot.
But yeah, a lot of hype on the stock.
Intel is keep getting hit hard though. Benchmarks, security issues, delays, failing at 7-10nm. They are currently still holding the monopoly though.
What I see lately is that AMD is raising prices. This seems like a good indicator of how they are positioning themselves versus the market.
Their P/E is an irrelevant measure for AMD's market value, as it was for AMZN when they were aiming for 0 profit and re-invest everything towards growth. They're obviously interested in maximizing R&D and selling their chips at very competitive pricing over profit which currently offers much better value over Intel's chips.
AMD only made 120M in profit last quarter on 1.8B revenue up 9% YoY, Intel made 6B profit down 6% YoY. How much more likely is AMD to double their profits to 240M then Intel is to 12B? If the market perception of AMD's chip superiority and OEM vendors start preferring AMD over Intel it could happen within the very near future, not decades out.
Amazon only recently started to turn on profits after achieving dominance in a number of markets, I don't expect AMD to focus on profits until they're able to get much higher market penetration so I expect their focus is going to continue to be on R&D and low margins. So their P/E will remain high along with their potential for future growth.
For context: Intel currently has a P/E ratio of 13.57, which is 70th percentile of tech stocks. AMD currently has a P/E ratio of 201.89, which is 5th percentile of tech stocks.
https://www.gurufocus.com/term/pettm/intc/PE-Ratiottm
https://www.gurufocus.com/term/pettm/intc/PE-Ratiottm
AMD as a company has great potential in the long term, but still barely makes any money today. Like, AMD is hoping to double their server marketshare (only part of the company) by the end of 2020... which will take them to... almost 10% of the market. It's real easy to make big percentage gains when you have 0% share of the market. The AMD of 2016 had nowhere else to go but up.