Advanced Micro Devices' (NASDAQ: AMD) stock price dropped 6% during after-hours trading on May 2 following its first-quarter report. The chipmaker's revenue fell 9% year over year to $5.35 billion but exceeded analysts' estimates by $40 million. Its adjusted net income dropped 39% to $970 million, or $0.60 per share, which also topped the consensus forecast by four cents.

AMD cleared Wall Street's low bar, which had been set to account for the PC market's post-pandemic slowdown, but the market didn't seem convinced that it had reached its cyclical trough yet. Nevertheless, AMD's stock now trades nearly 50% below its all-time high from November 2021 -- so could it actually be a contrarian buy for patient investors?

AMD CEO Lisa Su speaks at a recent company conference. Image source: AMD.

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Source Fool.com