Advanced Micro Devices can't seem to catch a break. Monday's selloff in artificial intelligence (AI) stocks -- on news of a cheap international AI model that's gaining popularity -- sent many tech stocks with some skin in this game lower. AMD was one of the casualties, even if the computing semiconductor specialist's 6% slide on Monday was tame compared with some of the more obvious names in this space.

It's a blow to AMD shareholders, but also the latest step down for a stock that has now plummeted 35% over the past 12 months. Despite seeing business for its data segment surge skyward lately, it has failed to participate in the AI stock rally. That could make this week's initial move lower a buying opportunity. Cathie Wood apparently seems to think so, judging by her trading activity.

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AMD isn't firing on all cylinders, and Monday's move lower left it hitting another fresh 52-week low. Its gaming segment experienced a 69% plunge in revenue in its latest quarter, and its embedded business took a 25% hit. But there is a silver lining: Its data center business, riding high on the AI boom, delivered a 122% pop in the same quarter. That's now more than half of the revenue mix, and enough to deliver overall top-line growth of 18% in the most recent report. That may not seem like a lot in light of the heavy lifting by its data center operations, but it's AMD's strongest year-over-year move higher in two years.

Investors won't have to wait long to see if Wood's purchase of AMD shares is timely. The company reports its fiscal fourth-quarter results next week, and AMD's guidance is calling for revenue growth to accelerate to a 22% increase for the quarter. Analysts are modeling more speed in 2025, eyeing a 25% revenue jump for all of next year. Revenue and profit targets have been inching lower lately for AMD, so the shares fetching 22 times forward earnings may not be cheap if sentiment is souring. However, there's a bullish case to be made that cheaper AI can help drive demand for data centers where AMD can be a beneficiary.

3. Pure Storage

Finally we get to Pure Storage. The stock fell nearly 10% on Monday, but unlike AMD, it was benefiting from the AI rally when the going was good. The shares are still up more than 60% over the past year despite Monday's retreat.

Pure Storage offers something better when it comes to flash storage solutions for data centers. Its platform, armed with its proprietary software, is more reliable than the offerings from its rivals. 

Recent financials, however, aren't great. It's been more than two years since Pure Storage topped 15% in quarterly revenue growth. The top-line gains have slowed in back-to-back quarters, clocking in at 9% in its latest report. However, Pure Storage is expected to return to double-digit revenue growth on improving margin in the coming years. Wood isn't afraid to buy the dip, especially when it's a stock that has a longer winning streak in its books.