AI stocks may be on the verge of experiencing turbulence, and Advanced Micro Devices (NASDAQ:AMD) is no exception. In fact, AMD stock has already fallen by nearly 18% from its recent highs. Increased fear and uncertainty may lead to more volatility and lower share prices in the AI chip industry.

Existing investors may find this troubling, especially if they bought near the top. However, for those yet to enter or accumulate a position, this price action could work in your favor. While a lot of factors are already priced into this stock, that’s not the case with a key long-term growth catalyst.

AMD Stock: The Silver Lining to an AI Stock Correction

So far in March, the latest wave of investor exuberance for AI stocks has simmered down. Concerns about a sudden slowdown in demand growth for the high-performance GPUs used for training artificial intelligence models is again on the rise.

The market rewards stocks reporting increases to their rate of growth, but is quick to bail on shares in companies perceived to be experiencing growth deceleration. Yet while this may be what’s behind the aforementioned drop in AMD stock over the past few weeks, it’s up for debate how much longer this continues.

With shares in AMD and its main AI chip competitor sliding sharply, investors could start diving back in to “buy the dip,” preventing a sell-off from turning into a full-on correction.

As we’ve argued previously, an upcoming event in May (AMD’s next quarterly earnings release) could be what sends this stock moving in the right direction once again.

Again though, even if neither of these scenarios plays out in the immediate term, there’s still a silver lining. A full-on correction could create an even stronger entry point for those looking to add or increase their exposure to this stock. Here’s why.

There’s One Catalyst That Could Really Move the Needle

The market is fully aware that, besides targeting the training and deployment areas of the overall AI space, Advanced Micro Devices is also targeting another big AI opportunity. That would be the rollout of AI compatible chips for PCs and other consumer electronics.

AMD stock at $185 per share may factor-in the upside from selling into robust demand for AI infrastructure chips. However, as we’ve also pointed out previously, this aspect to the company’s “AI growth story” has yet to really be reflected in its valuation.

AMD’s top rival may dominate the overall AI chip space, but this contender has already carved out a staggering 90% share of the market for AI-PC chips. Sure, for now this is a much smaller segment of the space.

Competitors are of course also eying it, and could grab significant share in the quarters/years ahead.

Nevertheless, between now and 2025, shipments of AI compatible PCs are expected to more than double between 2024 and 2025.

AI-PC shipments could double once more, between 2025 and 2028. With this high level of growth, plus AMD’s first-mover status in AI chips, the impact of this trend on operating results could be greater than currently anticipated.

The Verdict: Still a Buy, Whether Now or on Further Weakness

Yes, 2025, not to mention 2028, may seem very far off into the future. However, greater market appreciation for AMD’s AI-PC growth catalyst could begin taking shape far soon than one to four years out.

Over the next few quarters, AMD could provide further indication about the impact of AI-PC chip sales on future growth. This could help assuage concerns about a slowdown in AI infrastructure sales.

In turn, increasing confidence that AMD can hit the high-end of sell-side earnings forecasts for 2025 (between $8 and $9 per share).

Hence, while conceding that volatility could be far greater than previously expected, we remain confident AMD stock will hit $250 per share rather than re-hit $150 per share this year.

AMD stock earns an A rating in Portfolio Grader.

On the date of publication, Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.