Investors in Advanced Micro Devices (NASDAQ: AMD) have enjoyed healthy gains in 2023 as shares of the chipmaker have surged 70% so far.

There's a solid reason AMD might be able to sustain its impressive rally for the rest of 2023. But before we discuss that potential catalyst, you need to know about a major red flag that could wreck this high-flying semiconductor stock's momentum. 

AMD's 2023 surge has been fueled by the broader optimism in the semiconductor industry, which is getting a boost thanks to the growing adoption of artificial intelligence (AI). But the company's financial performance doesn't justify the stock's surge.

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Source Fool.com