Shares of AMD plunged over 17% despite beating expectations in their latest results. The stock fell an additional 4% the next day. The drop may be due to high valuation expectations and overall market volatility. While the sell-off seems excessive, AMD’s high valuation could lead to further declines in the short term.

AMD’s Q4 earnings per share of $1.53 surpassed estimates, with revenue reaching $10.3 billion, higher than the expected $9.7 billion. Guidance for the current quarter was also strong at $9.8 billion. However, the stock’s valuation at around 90 times earnings may have created unrealistic expectations, causing the market to react negatively.

Investors considering buying AMD stock should note that it was not on the list of the 10 best stocks recommended by The Motley Fool Stock Advisor. This list has a track record of identifying high-performing stocks, with a total average return of 894%. While AMD may experience further short-term declines, long-term investors could find it to be a good buy opportunity.

Before investing, it’s important to consider the recommendations of financial analysts and historical performance data. The Motley Fool’s Stock Advisor has a proven track record of identifying high-performing stocks. By following their recommendations, investors can potentially achieve significant returns over time.

Read more at Nasdaq: Is the Sell-Off in AMD’s Stock Overblown?