Advanced Micro Devices ( AMD 0.56%) stock fell following the release of the company's fourth-quarter 2024 results on Feb. 4, and a closer look at the company's quarterly performance and outlook indicates that investors may have overreacted.

Thanks to its market positioning and DeepSeek's recent breakthrough, Qualcomm could emerge as a top AI stock. Admittedly, losing Huawei was a significant setback, and Apple dropping Qualcomm as a supplier could signify the loss of a critical competitive advantage.