2022 was a painful year for growth investors and the tech sector. If you invested in a company that usually generates tremendous revenue and earnings growth from a high-tech business model, with the lofty valuation ratios you often see on that type of stock, you were in for some ruthless stock price corrections last year. Semiconductor designer Advanced Micro Devices (AMD -2.69%) crossed every I and dotted every T in that description. That's why AMD's stock trades more than 40% below the all-time highs of November 2021 nowadays.

But history has shown that statistically speaking, years of market downturns are often tightly followed by strong rebounds. This natural cycle reminds us that the economy tends to grow over time. All things considered, the stock market will almost certainly rise over many years and decades.

Moreover, the current inflation crisis may have toppled a few banks but regulators are starting to get a grip on rising consumer prices now. If the recovery doesn't start a fresh bull run on the stock market in the second half of 2023, you can rest assured that the next year should follow through on that promise.

If and when the bull market turns up, I see three solid reasons why you want to own some AMD stock for that occasion.

Reason No. 1: a strong foundation with solid growth in data centers

On the hunt for long-term investment ideas, I want the story to start with a strong business plan and an established history of growth.

AMD demonstrates this in its expansion of the data center and embedded product divisions. In 2022, these two segments generated a combined revenue of $10.6 billion for AMD, accounting for nearly 45% of its overall top line. That's up from just 24% one year earlier, thanks to the crucial Xilinx buyout (see below for more detail) and a 64% sales boost for data center products. A company posting impressive growth like this, it's a sign of a solid footing and a promising future.

Reason No. 2: the promising Xilinx acquisition

In the business world, fruitful or failed acquisitions can make or break a company. AMD's buyout of embedded and programmable chip maker Xilinx already looks like a successful endeavor, boosting AMD's financials and long-term growth prospects.

This game-changing merger not only strengthens AMD's position in the market but also enhances its ability to compete against industry rivals. In addition, Xilinx's portfolio of advanced chip technologies, including a long history with field programmable gate arrays, should even spark new design ideas and cross-platform synergies over time.

A company making intelligent strategic moves like this can set the stage for long-term success. Ultimately, the Xilinx deal may be the best $50 billion AMD ever spent.

Reason No. 3: rising business efficiency

As investors, we want to see companies that can efficiently generate profits. When a company can maintain and improve its fiscal efficiency, it should be in a better position to create value for its shareholders. That's just a simple fact based on plain old math.

Under the mastermind leadership of CEO Lisa Su, AMD can run a tight ship. Adjusted operating margins worked out to 27% for the 2022 fiscal year, up from 25% in 2021 and miles ahead of arch-rival Intel (INTC -5.42%), which showed a reading of 4.3% on the same metric last year.

In anticipation of the next bull market's inevitable arrival, AMD stands out as a company with strong growth, a recent and successful acquisition under its belt, and rising levels of profitable efficiency. Of course, investing always carries inherent risks, and the exact timing of long-term market trends is always up for debate. Still, I can't shake this simple idea: AMD stock looks like a wise investment -- or at the very least, a promising name for further research -- if you want to capitalize on the spring-loaded rebound opportunities the next bull market could present.