Shares of Advanced Micro Devices (NASDAQ: AMD) took a dive on Wednesday morning, dipping as much as 8.7% by noon ET. The semiconductor designer reported second-quarter business results on Tuesday evening, and the report wasn't impressive enough to support AMD's soaring stock chart.

AMD's second-quarter sales fell 18% year over year to $5.36 billion. Adjusted earnings dipped 3%, landing at $0.58 per diluted share. These results were near the midpoint of management's guidance for the quarter. Your average Wall Street analyst would have settled for earnings of roughly $0.57 per share on revenue near $5.31 billion.

So AMD's results edged past Wall Street's official expectations, but the stock was priced for perfection heading into this business update. Share prices had gained 82% year to date by Tuesday's closing bell. AMD shares were changing hands at hefty valuation ratios like 76 times free cash flow and 511 times earnings. It takes more than an in-line performance to support prices at that lofty level.

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Source Fool.com