10 High Growth NASDAQ Stocks That Are Profitable in 2024

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

5-Year Net Income Growth: 47.95%

5-Year Revenue Growth: 31.70%

TTM Net Income: $1.35 Billion

Number of Hedge Fund Holders: 108

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global technology company specializing in semiconductor products and is competing with Wall Street’s favorite chip maker by making cheaper and power-efficient semiconductor chips.

The company initially faced a series of challenges from Intel and Nvidia for its GPU business. However the company revived its business with three core strategies.

Firstly, it expanded the business into enterprise, embedded, and semi-custom (EESC) chipmaking with custom APUs. These became a key component for PlayStation and Xbox consoles. Secondly, management refreshed its CPU business with Ryzen and Epyc servers. It also shifted its foundry to Taiwan Semiconductor Manufacturing, which is one of the advanced chipmakers internationally. These steps made Advanced Micro Devices, Inc. (NASDAQ:AMD) chips more powerful and smaller enabling it to capitalize on its competitors.

During the second quarter of 2024, the company grew its revenue by 9% to $5.8 billion, mainly on the back of strong growth in the Data Center and Client segments. Moreover, its GAAP margins also improved 3% during the same time to reach 49% during the most recent quarter.

Management expects the AI accelerators market will surpass $400 billion by 2025 and analysts are expecting that the company will double its revenue in 2025 to reach at least $10 billion in 2025. Having grown its revenue by 31.70% during the past 5 years, the $10 billion mark doesn’t sound like an unachievable target for Advanced Micro Devices, Inc. (NASDAQ:AMD). It is the 5th high-growth NASDAQ stock that will be profitable in 2024.

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.”