Is AMD a Buy?
This has been a bad year for semiconductor stocks following two years of healthy growth when supply was tight and demand was booming. That explains why the PHLX Semiconductor Sector index has lost 35% of its value in 2022.
Reports about high levels of semiconductor inventories and weakening demand have sent shockwaves through this once-high-performing sector. Not surprisingly, shares of Advanced Micro Devices (NASDAQ: AMD) have borne the brunt of the broader semiconductor industry weakness, losing 47% of their value so far in 2022.
The U.S. government's latest sanctions on sales of artificial intelligence (AI) chips to China have further dented investor confidence in the stock despite AMD's solid results and sunny outlook. However, a closer look at the markets AMD is operating in indicates that it could defy any potential slowdown in semiconductor sales. Let's see why that may be the case.
Source Fool.com
