Advanced Micro Devices (NASDAQ: AMD) stock got a reality check after the release of the company's first-quarter 2023 results on May 2, as investors pressed the panic button and brought the chipmaker's impressive rally to a temporary halt.
Shares of AMD plunged more than 9% on the day following its earnings release. The semiconductor giant's guidance turned out to be lighter than expected thanks to the weakness in the personal computer (PC) market and a flat performance from the data center segment on account of an ongoing inventory correction at enterprise customers.
Despite the subsequent rebound in the stock price, the company's latest results and guidance suggest that AMD bears may have the upper hand, especially considering the stock's expensive valuation. Let's look at the reasons why.
Source Fool.com