Advanced Micro Devices (NASDAQ: AMD) investors are sitting on solid gains of almost 70% in 2023 thanks mainly to the broader surge in semiconductor stocks, even as the company's financial performance has left a lot to be desired.
AMD's revenue in the first six months of 2023 dropped almost 14% year over year to $10.7 billion. This decline can be attributed to weak sales of personal computers (PCs), a market that considerably influences AMD's overall business. The company's processors and graphics cards are used in PCs, a market that fell 29% year over year in the first quarter followed by a smaller drop of 13% in the second quarter, according to market research firm IDC.
The good news for AMD is that the PC market's decline has slowed down. However, a closer look indicates that AMD's reliance on this space means that the bearish argument against an investment in the stock still holds ground. Let's see why that's the case.
Source Fool.com