10 Best Extremely Profitable Stocks to Buy Now

2. Advanced Micro Devices, Inc. (NASDAQ:AMD)

5 Year Revenue Growth: 32.17%

5 Year Net Income Growth: 54.27%

TTM Net Income: $1.83 Billion

Number of Hedge Fund Holders: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) is an international company that specializes in semiconductors, which are essential components used in electronic devices. In simple terms, AMD designs and creates the chips that power computers, gaming consoles, and data centers. The company operates through four main segments including Data Centers, Client, Gaming, and Embedded segment.

The company is making significant strides in introducing new products that are powering data centers and the AI revolution. On November 12, the company announced the Versal Premium Series Gen 2, a new line of products designed to enhance system performance for demanding data-intensive tasks. With the increasing demand for AI capabilities, the new product line is designed to accelerate AI model training and inference, making it a valuable asset for businesses focusing on AI development.

During its third-quarter results for fiscal 2024, Advanced Micro Devices, Inc. (NASDAQ:AMD) reported net revenue of $6.8 billion, indicating an 18% increase year-over-year. The gross margin of the company stood at 50%, with $724 million in operating income. The company’s CEO, Dr. Lisa Su, noted that the company achieved record revenue primarily due to increased sales of its EPYC CPU and Instinct data center products and strong demand for Ryzen PC processors.

For the fourth quarter of 2024, Advanced Micro Devices, Inc. (NASDAQ:AMD) anticipates revenue to be around $7.5 billion, with a possible variation of $300 million. This forecast indicates a 22% increase compared to the same quarter last year and a 10% increase from the previous quarter.

Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2024 investor letter:

“Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) lagged the market after the company reported earnings results that, while generally strong, left the market wanting more. The company reported AI revenue of ~$600 million and increased its forward-looking outlook for AI revenue growth, but shares took a breather, as results missed elevated expectations after the stock’s strong performance. Despite the stock’s underperformance during the quarter, the company’s AI story remains very much intact. The growth outlook for the company is supported by better cloud demand, enterprise recovery and continued share gains ahead of the company’s new AI product launch.”