Advanced Micro Devices (NASDAQ: AMD) stock has rallied hard over the past year, vaulting 127% even though the chipmaker's revenue and earnings shrank in recent quarters due to weakness in the personal computer market. This may lead one to wonder if buying AMD is a good idea at this point considering its expensive valuation.
After all, AMD's price-to-sales multiple has increased over the past year while its top line has headed south. Meanwhile, the consensus of Wall Street analysts estimates that AMD's earnings will drop 31% for 2023 to $2.40 per share.
Savvy investors, however, should consider looking past these recent results as there are two big catalysts that could supercharge AMD in 2024 and beyond.
Source Fool.com