Advanced Micro Devices (NASDAQ: AMD) stock sank 7% following its second-quarter 2023 earnings report released on Aug. 1. That was despite reporting better-than-expected numbers and indicating that its personal computer (PC) business has bottomed out.

Even though AMD's guidance for the current quarter suggests that the worst may be behind the company, the stock was hit hard by a broad market selloff on Aug. 2. Moreover, it looks like Wall Street was expecting more from AMD on the artificial intelligence (AI) front, an area where the company has failed to gain traction so far due to the lack of a competitive chip.

AMD's AI accelerators are yet to hit the market, allowing rival Nvidia (NASDAQ: NVDA) to capture a big chunk of this hot growth opportunity. But savvy investors can use AMD's latest pullback to buy its shares as the chipmaker's AI efforts should help it win big in one key market and supercharge its growth.

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Source Fool.com