7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company focused on high-performance computing, visualization technologies, and graphics. The company plays a significant role in the AR industry by producing chips that power immersive experiences in various AR and VR devices. It powers Sony’s PlayStation 5 and Microsoft’s Series X|S game consoles. In addition, the company’s Radeon Pro Duo with its LiquidVR SDK is a powerful platform aimed at all aspects of VR content creation. This ranges from education and medicine to journalism, entertainment, and cinema.
Its fiscal Q3 2024 results reflected a strong operational model, with revenue increasing 18% year-over-year to a record $6.8 billion. This growth was attributed to record product sales for Instinct and EPYC, along with robust demand for the company’s Ryzen PC processors. Significantly higher Data Center and Client Processor sales also played a role, with Data Center segment revenue growing by 122% to a record $3.5 billion.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is building strong momentum with large Enterprise customers, especially with wins with large energy, technology, financial services, and automotive companies in fiscal Q3 2024. These included Airbus, FedEx, Truck, Walgreens, Daimler, HSBC, Siemens, and others. Advanced Micro Devices, Inc. (NASDAQ:AMD) takes the seventh spot on our list of the 10 best augmented reality stocks to buy now.
Meridian Contrarian Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth quarter 2023 investor letter:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor chip maker specializing in central processing units (CPUs), which are considered the core component of most computing devices, and graphics processing units (GPUs), which accelerate operations running on CPUs. We invested in 2018 when it was a mid-cap value stock plagued by many years of underperformance due to lagging technology and lost market hi share versus competitors Intel and Nvidia. Our research identified that changes and investments made by current management under CEO Lisa Su had, over several years, finally resulted in compelling technology that positioned AMD as a stronger competitor to Nvidia and that its latest products were superior to Intel’s. We invested on the the belief that AMD’s valuation at that that time did not reflect the potential for its technology leadership to generate significant market share gains and improved profits. This thesis has been playing out for several years. During the quarter, AMD unveiled more details about its upcoming GPU products for the AI market. The stock reacted positively to expectations that AMD’s GPU servers will be a viable alternative to Nvidia. Although we pared back our exposure to AMD into strength as part of our risk-management practice, we maintained a position in the stock. We believe AMD will continue to gain share in large and growing markets and is reasonably valued relative to the potential for significantly higher earnings.”
