Investors tend to love latching on to new trends and finding relationships between companies where success from one can mean equal (or greater) success for another. For instance, there was anticipation headed into Advanced Micro Devices' (NASDAQ: AMD) second-quarter 2023 earnings release that Nvidia's (NASDAQ: NVDA) blockbuster success in AI training would be reflected in AMD as well. That didn't end up happening.

The fact is, these things can take time. Nvidia's pioneering work is not going to be easily replicable. AMD's most recent update on its work with AI chips certainly wasn't bad, but it didn't set the world on fire either. Is AMD stock still a buy after the news?

As expected, AMD had a messy Q2 2023. Revenue and adjusted earnings per share (EPS) were a respective $5.4 billion (down 18% year over year) and $0.58 (down 45% year over year). Weakness was especially seen in AMD's "client group" -- chips for PCs and laptops -- with sales ($998 million) sinking 54% from the same period in 2022 as excess inventory in consumer electronics continues to weigh on AMD.  

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Source Fool.com