Unless there is some big nasty accounting scandal, or some major illegal activity that occures (Enron and MCI Worldcomm come to mind), AMD will bounce back.
Sure, you could buy stock now, and wait out the storm for profits. The problem is, how long will the storm last? Investing money is about return over time. I do believe AMD will bounce back, and stock prices will rise. But the cost of leaving your money in AMD at the moment could be more than the return you will get later if you factor in what other things you could be investing in right now that are either safer, or more likely to return profits quicker.
In the stock market, opportunity costs can be heavy when you look at what else is available at the moment.
AMD may be a good investment with its prices so low, but is it the best investment of your money right now?
BTW..... I have been know to be completely wrong at times.