Advanced Micro Devices (NASDAQ: AMD) investors are sitting on nice gains of 65% in 2023. The chipmaker has benefited from a combination of the broader surge in semiconductor stocks and a turnaround in its fortunes following a difficult first half of the year.
AMD's revenue and earnings have taken a hit of late on account of steep declines in personal computer (PC) sales, which have hamstrung the demand for its central processing units (CPUs). Additionally, the company is witnessing weakness in the enterprise data center segment, where an ongoing inventory correction has led to a drop in sales. But AMD's guidance for the third quarter of 2023 indicates that the worst may be over.
However, AMD stock has pulled back almost 17% from the 52-week high that it hit in mid-June. This pullback may seem a tad surprising given that AMD delivered solid second-quarter results in August, and its guidance points toward better times ahead. Does this mean savvy investors should see this semiconductor stock's pullback as a buying opportunity? Let's find out.
Source Fool.com