I would be lying if I said I knew what the outlook for AMD stock was for the rest of 2022. That's not as strong as the 65% revenue gain the company achieved from 2020 to 2021, but it's enough to justify the stock's current valuation at around 30x earnings. It would also benefit from a separate piece of legislation, the FABS Act that would allow the company to purchase tools for use inside those factories. Intel, which manufactures its own chips stands to reap benefits from the CHIPS Act as it looks to build factories in the United States.

And there have been reports that AMD along wih Nvidia ( NASDAQ: NVDA ) are balking at the favorable treatment Intel ( NASDAQ: INTC ) will receive from the bill. Some of the noise is coming from the debate over whether Congress will pass the $52 billion chip bill. AMD Will be Just Fine No Matter What Congress Decides to Do The company has solid fundamentals and it sells into the most highly sought-after sectors of the market including data center and professional graphic processing units (GPUs), and semi-custom System-on-Chip (SoC) products, and technology for game consoles. However, if you have the patience to play the long game, AMD stock looks like a solid buy. And it seems as if, in the short term, the bears have the upper hand. The company's stock is down 50% from its all-time high. But super cycles come to an end, and AMD isn't being spared by the tech selloff. The pandemic was a super cycle event for chip makers. From the onset of the Covid-19 pandemic to the end of November 2021, AMD stock climbed 290%.

The bears may have control, but playing the long game on AMD stock is still a solid moveĪdvanced Micro Devices ( NASDAQ:AMD ) is illustrative of how quickly sentiment can turn.

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