Advanced Micro Devices (NASDAQ: AMD) hasn't received much love on Wall Street of late, which is evident from the 23% decline in the company's stock price since it posted a 52-week high in early March.

The stock has been punished on account of weaker-than-expected growth in the artificial intelligence (AI) business in the first quarter of 2024, as a result of which the company missed the market's growth expectations. Additionally, the stock was recently downgraded by Morgan Stanley to neutral from overweight, with the investment bank pointing out that investors' expectations of growth from its AI business are on the higher side.

The bank added that it sees limited upside in shares of AMD despite a recovery in the company's key business segments. However, it may be too early to write off this semiconductor stock for a few simple reasons. Let's take a closer look at two of them.

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Source Fool.com