This year, AMD stock has risen 75% to $33.03, which is 30.9 times analysts’ forward EPS estimate. This PE ratio suggests investors have already priced in the company’s strong earnings. Moreover, AMD’s fourth-quarter guidance fell short of analysts’ estimates.

Expectations may have been raised after AMD rival Intel’s beat analysts’ earnings and guidance estimates by a wide margin. The results sent rival stocks Intel (INTC) and Nvidia down 1% in early trading.