Advanced Micro Devices and Super Micro Computer led a selloff in chip stocks on Wednesday after their earnings disappointed investors, who had piled into the sector on hopes rising AI investments would boost demand.

Advanced Micro Devices (NASDAQ:AMD) has achieved the status of being one of the most important semiconductor companies in the world. Advanced Micro Devices stock can keep moving up here. It outstripped Intel (NASDAQ:INTC) in the central processing unit space,

Advanced Micro Devices, Inc (NASDAQ: AMD) was trading flat Tuesday ahead of its first-quarter earnings print set to take place after the market closes.

The firm maintained a positive rating on the shares but lowered its price target from $200 to $185. The analysts expect the company to issue weaker guidance in the upcoming report that could limit the stock's near-term upside. Here's why.

Advanced Micro Devices stock has seen significant gains in the recent past, but fundamentals have failed to keep pace. Find out why AMD stock is a Sell.

The growing adoption of artificial intelligence (AI) has created a boon for a number of companies in the semiconductor space, and Advanced Micro Devices ( AMD -5.78%) has been among the beneficiaries of that trend. The company's processors have seen strong demand driven by these secular tailwinds.

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Advanced Micro Devices (NASDAQ: AMD) shares returned 441% over the last five years, largely driven by market share gains against Intel in central processing units (CPUs). The company's opportunity selling graphics processing units (GPUs) to data centers could be even bigger and support another major run for shareholders in the next decade.