Earnings for Advanced Micro Devices (NASDAQ: AMD) are right around the corner. This can be a tumultuous time in the stock market, as companies can either exceed expectations and soar, or miss them and plummet. The risk becomes even higher when stocks are highly valued, like AMD is, as it must blow expectations out of the water to justify its current valuation. As a result, I think investors should consider taking action before Nov. 3 (when AMD reports), because the stock has a very high valuation that may be tough to live up to. Here's why. Image source: Getty Images.
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