10 Best GARP Stocks to Buy Now

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

Fwd. P/E: 22

Expected EPS Growth Next FY: 42%

Number of Hedge Fund Holders: 96

Upside Potential: 40%

Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its diverse product lineup includes microprocessors, graphics processors, and system-on-chip (SoC) solutions, catering to various sectors such as data centers, gaming, and embedded systems. The company has made significant strides in the CPU and GPU markets, positioning itself as a key competitor to Intel Corp. (NASDAQ:INTC) and NVIDIA Corp. (NASDAQ:NVDA).

Despite its market share gains in CPUs, Advanced Micro Devices Inc. (NASDAQ:AMD) has faced challenges in 2024 and 2025, with its stock declining by 18% last year and an additional 17% in 2025. The company’s AI expansion has lagged behind, with slower adoption of its GPUs, putting it at a disadvantage compared to Nvidia. However, AMD continues to benefit from the growing demand in the data center sector, as reflected in its Q4 2024 data center revenue, which surged 69% year-over-year.

To strengthen its position in AI, AMD is expanding its software ecosystem through its ROCm platform and collaborations with hyperscalers, though it still trails its top competitor. Nonetheless, the company is making steady progress. A key step in this direction was the recent launch of its latest graphics architecture, RDNA4, featuring powerful new graphics cards. These cutting-edge products come equipped with 16GB of memory and significant enhancements for delivering high-quality gaming experiences.