10 Best Reddit Stocks To Buy Right Now

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

Number of Hedge Fund Holders: 108

Advanced Micro Devices Inc. (NASDAQ:AMD) is a semiconductor company that designs and manufactures microprocessors, including the Ryzen and EPYC series, and graphics processing units (GPUs) under the Radeon brand. It’s a major competitor to other big semiconductor firms, particularly in the CPU market, providing processors for personal computers and servers. Its GPUs are also used in gaming, data centers, and AI applications.

The company’s AMD Instinct MI300X is a powerful AI accelerator designed for high-performance computing and GenAI tasks and is becoming popular with cloud companies, computer makers, and AI businesses. Major tech companies like Microsoft and Meta are using the MI300X for their AI projects.

The company delivered strong Q3 results, exceeding revenue expectations with a 17.57% year-over-year increase to $6.82 billion. Data Center and Client Processor sales drove this growth, offsetting declines in the Gaming and Embedded segments. Earnings per share increased by 31%.

AMD is acquiring the tech company, ZT Systems, to enhance its AI capabilities. This acquisition will strengthen its expertise in designing AI infrastructure, which will help the company compete better in the overall market. The deal is expected to close in H1 2025. Additionally, it launched the next-generation MI325X GPU, which offers up to 20% higher performance for AI tasks. The company is focused on AI and has made significant advancements in its product portfolio and partnerships, positioning it for continued growth.

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.”