Been watching AMD's chart action over the past couple months and there's actually an interesting story buried in what looks like a pretty brutal selloff. Stock got hammered 15.4% in February despite the company absolutely crushing earnings — $1.53 per share on $10.27B revenue when analysts were looking for $1.32 and $9.67B. That's a solid beat on both lines.

But here's where it gets messy. Guidance came in at $9.5-10.1B for the current quarter, which sounds solid until you realize some investors were apparently modeling for way more upside tied to AI demand. The midpoint actually beats consensus estimates, but that's not what mattered to the market. The whole sector got caught up in AI valuation concerns last month, and AMD's processing devices business couldn't escape the broader pullback.

What's wild is that right after this selloff, AMD announced they're expanding their Meta partnership — Meta's going to use AMD's MI450 GPUs for their AI data centers plus their top CPUs. This is huge for AMD's competitive positioning against Nvidia in the high-performance processing devices space. Real win with a major hyperscaler.

So you've got the company posting earnings beats, providing solid guidance, landing a meaningful contract with Meta, and the stock still gets punished. Market was just in a weird mood about AI valuations in February, and the inflation data at month-end didn't help. Tech got hit hard — Nasdaq was down 3.4% while the S&P 500 only dropped 0.9%.

Fast forward to now and AMD's had a rough March too, down another 0.4% as of early month. Stock's trading around 30x forward earnings. The company's not going to catch Nvidia on ultra-high-end GPU performance anytime soon, but the market's big enough for multiple winners and right now those two are basically it in this category. Interesting spot for growth investors to be watching, especially with the Meta deal in their back pocket.