10 Best Revenue Growth Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 107

5-Year Revenue Growth: 32.17%

Advanced Micro Devices, Inc. (NASDAQ:AMD) serves as the high-performance and adaptive computing leader that came into being as a Silicon Valley startup in 1969. The firm operates through multiple segments including Data Center, Client, Gaming, and Embedded. AMD’s mission revolves around building products that accelerate next-generation computing experiences.

Advanced Micro Devices, Inc. (NASDAQ:AMD) has been a major player in the semiconductor landscape. However, it has underperformed peers in the chips sector and has declined by 18% in the past year. Although its growth opportunities as a top AI chip maker are defended, it is major AI stocks such as Credo, Nvidia, and Broadcom have more than doubled in value while stocks with less exposure to AI and more exposure to traditional PCs and servers have suffered. Another concerning aspect is that AMD’s Gaming and Embedded segments remain in a slump with their revenues declining 69% and 25% year over year, respectively, in the most recent quarter although the company is witnessing significant growth in its Data Center and Client segments.

While Bank of America analyst Vivek Arya believes that AMD’s pipeline lacks Nvidia’s by more than a year deeming the company a distant second to NVDA in the race for AI-powering chips and processors. With rising competitive pressures set to weigh down AMD more heading into 2025, Goldman Sachs analyst Toshiya Hari downgraded the stock to ‘neutral’ from ‘buy’ and lowered the price target from $175 to $129, while noting:

“Although we remain constructive on AMD’s ability to take share from Intel in x86-based compute across PCs and traditional servers, we are increasingly concerned [over] the rise of Arm-based custom CPUs and heightened competition in accelerated computing”