You want answers?
I think I'm entitled to them.
You want answers?
I want the truth.
You can't handle the truth!
-- Versified from A Few Good Men, script by Aaron Sorkin

If you have some cash to invest today, Mr. Market is doing you a solid favor. Shares of Advanced Micro Devices (NYSE:AMD) fell after a surprisingly strong earnings report, and I think it's all a big misunderstanding. In other words, this would be a great time to load up on discounted AMD shares.

Nobody seems to care about the flipside of the coin. The $0.66 GAAP loss per share was indeed wider than the year-ago quarter's $0.60 loss per share -- but much better than last quarter's massive $2.37 loss per share. Despite strong product launches from rival Intel (NASDAQ:INTC) and a continued weak economy, AMD has clearly turned a corner through cost savings and restructuring.

In terms of sales, the story turns outright positive. Net revenue was down 21% year-over-year to $1.18 billion -- but that's actually 1.3% net sales growth from last quarter. Last year, the first quarter saw 22% lower sales than the previous period. The year before that, it was a 36% seasonal sales swoon. In 2006, it was a 28% drop. AMD is producing stellar sales while swimming against seasonal currents.

As for CEO Dirk Meyer's presumed doubts about the PC market's bottom, here's what he had to say about that: "You know, I've heard some say that we've hit bottom. I don't know how anybody could say that we've hit bottom given the continued uncertainty that we have in the macroeconomic climate. And as a result of that I would say we're simply being cautious in our outlook." He's hardly crucifying Dell (NASDAQ:DELL), Hewlett-Packard (NYSE:HPQ), or server partner Sun Microsystems (NASDAQ:JAVA) here -- it's just conservative estimates for the murky waters ahead.

Historically, the second quarter has been a challenging quarter for AMD. "You put all that together and the outlook is murky at best, and that results in our forecast," Meyer said. And I think a few news outlets missed these ameliorating facts.

So AMD is going, going, gone at slightly lower prices today than yesterday, despite a generally up market. And I don't see any good reason for that price drop. Feel free to take advantage of the mispricing, while it lasts.

Further Foolishness:

Dell and Intel are Motley Fool Inside Value picks. The Fool owns shares and covered calls of Intel. Try any of our Foolish newsletters today, free for 30 days.

Fool contributor Anders Bylund owns shares in AMD, but he holds no other position in any of the companies discussed here. You can check out Anders' holdings or a concise bio if you like, and The Motley Fool is investors writing for investors.