That investors are selling down AMD stock after the company will dilute shareholders by $1 billion may prove short-lived. Stocks go up and down. AMD will do the same. The obvious question is: how much further will the stock fall?\Those holding AMD at $7 - $8 are at a loss, but it is not a realized loss until the position is closed.AMD is a long play.Looking ahead, AMD reports earnings next month. It still has a number of announcements: ZEN CPU, GPU sales, semi-custom sales, and a console refresh in 2017/18.Panic sellThe stock dilution is scaring junior investors. In exchange for lower debt and a higher balance sheet profile, AMD is taking a hit on the share price now. The higher cash levels give AMD room to invest and grow.Expect AMD raising capex forecasts.Don’t forget about the GloFlow deal AMD announced on September 1. In short, AMD may build 7nm and 14nm from GlobalFoundries.Part 1 is here.