AMD is suffering from a strained PC market, but its growing position in AI strengthens its long-term outlook.

Earnings season is here, with countless stocks on the move. The tech industry, in particular, is experiencing a lot of fluctuation as macroeconomic headwinds continue to burden many companies.

Advanced Micro Devices reported its second-quarter earnings on Aug. 2, showing a year-over-year revenue decline of 18% despite beating analyst expectations by $40 million. The quarter was a mixed bag, but analysts remain optimistic about the chipmaker's long-term potential. Its stock is up 2% since the start of August.

The company is making promising headway in artificial intelligence (AI) and will likely benefit from a gradually recovering personal computer (PC) market. As a result, it's not a bad idea to consider investing in AMD before it's too late. However, it's always best to understand the pros and cons of a company before adding it to your portfolio.