10 Most Promising Tech Stocks According to Hedge Funds

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

Number of Hedge Fund Holders: 124

Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks seventh on our list of the most promising technology stocks according to hedge funds. The semiconductor and IT company produces accelerators that are capable of managing complex AI workloads. These accelerators have high bandwidth memory and a huge memory density.

Previously in July, Advanced Micro Devices, Inc. (NASDAQ:AMD) announced the launch of an AI-backed smart parking solution that improves vehicle license plate recognition accuracy, parking spot vacancy detection, and accident detection. On October 10, the company launched new processors able to power the next generation of commercial PCs. On the same day, the company launched high-performance computing solutions to keep up with the AI computing era.

In the second quarter of 2024, the company generated $5.8 billion in revenue, up by 9% year-over-year. Most of the revenue came from revenue growth in data center and client segments. During the same quarter, net income grew by a staggering 881% year-over-year.

Overall, the company is leading the AI and technology wave with its advanced accelerators and processors. Advanced Micro Devices, Inc. (NASDAQ:AMD) expects to deliver strong results in the second half of the year due to advances in AI.

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.”