4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 108
Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks fourth on our list of the best future stocks to buy for the long term. The company is responsible for manufacturing semiconductor devices that are used in computer processing. Some of its products include microprocessors, graphic processors, embedded processors, and motherboard chipsets.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is catching up to Nvidia to become a market leader in artificial intelligence. Such can be attributed to its strategic partnerships and acquisitions. In August alone, the company closed two acquisition deals. On August 12, the company completed the acquisition of Silo AI to speed up the development and deployment of AI models on AMD hardware. On August 19, AMD acquired ZT Systems, a provider of AI infrastructure, to accelerate its data center AI capabilities.
Advanced Micro Devices, Inc. (NASDAQ:AMD) logged $5.8 billion in revenue, during the second quarter of 2024, up by 9% year-over-year. Of this, its data center revenue accounted for $2.8 billion, up by 115%, making up almost 50% of total sales. During this quarter, the company also bagged significant companies as customers including Adobe, Boeing, Optiver, and Seimens.
The company expects to post strong financial results in the second half of 2024 as it delivers top-notch AI solutions to the market. In the third quarter of 2024, Advanced Micro Devices, Inc. (NASDAQ:AMD) expects revenue to reach $6.7 billion, representing a 16% growth rate from Q3 2023.
Analysts are bullish on AMD and their 12-month median price target of $190 points to a 26% upside from current levels. Overall, AMD was held by 108 hedge funds at the close of Q2 2024 with total stakes amounting to $10.3 billion. As of June 30, Fisher Asset Management was the largest shareholder with a position worth $3.8 billion.
Fred Alger Management mentioned Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2024 investor letter:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a major global supplier of PC microprocessors and graphics processors to computing original equipment manufacturers (OEMs). The company’s product range spans desktops, notebooks, servers, graphics, and embedded/semi-custom chips. AMD operates in a large addressable market, covering areas such as PCs, servers, high-end gaming, and deep learning. Additionally, AMD has introduced competitive AI technologies, including powerful accelerators poised to capture a share in a market worth several hundred billion dollars. During the quarter, the company reported fiscal first-quarter operating results that met analyst estimates, with strengths in data center GPUs and server CPUs offsetting weaknesses in their gaming and embedded businesses. Moreover, management raised their fiscal second-quarter revenue guidance, albeit slightly below consensus estimates, where they expected double digit growth in data center revenues, while projecting a decline in their gaming segment, driven by weaknesses in both desktop GPUs and Semi-Custom Systems-on-a-Chip (SoC). While weaker-than-expected near-term results weighed on shares during the quarter, we believe the company is positioning itself to potentially benefit from long-term growth in AI infrastructure spending. Specifically, the company continues to gain server CPU market share, which could potentially accelerate as traditional compute deployments begin to recover.”
