Advanced Micro Devices (NASDAQ: AMD) has witnessed a terrific turnaround on the stock market in 2023 amid the broader rally in tech stocks, with shares of the chipmaker gaining 35% so far, bringing relief to investors after a terrible 2022 when the stock plunged a massive 57%.

The company's stronger-than-expected fourth-quarter 2022 earnings report released on Jan. 31 led to the rally in AMD stock. AMD's impressive growth in the data center and embedded segments and CEO Lisa Su's comment on the earnings conference call that the personal computer (PC) market could hit bottom in the first quarter of 2023 seem to have boosted investor confidence in the company's prospects.

Does this mean investors who missed AMD's rally should buy the stock right now in anticipation of more gains? Or should they tread cautiously and avoid the stock given its valuation and a challenging PC market? Let's find out.

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Source Fool.com