AMD (NASDAQ: AMD) just had a messy third quarter 2023, but generative artificial intelligence (AI) once again stole the spotlight and sent shares of the chip designer higher. The stock has doubled since bottoming during the bear market just over a year ago.

But how much hype is really warranted for AMD? After all, this top chip stock also carries a high valuation, and there's a lot more going on under the hood than AI.

AMD has been around for decades, has survived multiple economic downturns for the cyclical semiconductor industry, and come roaring back each time -- particularly in its run over the decade-plus following the great financial crisis of 2008-2009, and AMD's parting of ways with its manufacturing business GlobalFoundries. But this coming up cycle for chips is different. One standout quote from AMD CEO Lisa Su on the last earnings call regarding its new AI chip, the Instinct MI300, had investors feeling optimistic:

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Source Fool.com