2) Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of hedge fund holders: 108
Advanced Micro Devices, Inc. (NASDAQ:AMD) produces semiconductor products and devices. It provides products like microprocessors, embedded microprocessors, chipsets, graphics, and supplies them to third-party foundries. Also, it provides assembling, testing, and packaging services.
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s recent CPU and GPU offerings appear to be more competitive with Intel’s and Nvidia’s products and it uses leading-edge process technologies. Its GPUs are highly sought after when it comes to cryptocurrency mining. With the improved outlook for blockchain technology, the company is well-positioned to take advantage. The company primarily benefits from intangible assets associated with its x86 instruction set architecture license, together with expertise in chip design.
Advanced Micro Devices, Inc. (NASDAQ:AMD) boasts a strong portfolio of Al data center products, ranging from accelerators to FPGAs. As a result of this portfolio, the company enjoys an ‘end-to-end Al platform.
In addition to the mentioned growth drivers, the company should significantly benefit from its recent acquisition. The company announced a definitive agreement to acquire ZT Systems for the consideration of $4.9 billion. This should help Advanced Micro Devices, Inc. (NASDAQ:AMD) in enhancing its expertise in Al infrastructure systems and services.
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s 2Q 2024 results were supported by healthy growth in the Data Center and Client segments. The company saw record data center segment revenue of $2.8 billion, exhibiting a rise of 115% YoY mainly because of the steep ramp of AMD Instinct™ GPU shipments, and strong growth in 4th Gen AMD EPYC™ CPU sales.
Rosenblatt Securities reiterated a “Buy” rating on the shares of Advanced Micro Devices, Inc. (NASDAQ:AMD), setting a price target of $250.00 on 31st July.
Fred Alger Management, an investment management company, released its second quarter 2024 investor letter. Here is what the fund said:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a major global supplier of PC microprocessors and graphics processors to computing original equipment manufacturers (OEMs). The company’s product range spans desktops, notebooks, servers, graphics, and embedded/semi-custom chips. AMD operates in a large addressable market, covering areas such as PCs, servers, high-end gaming, and deep learning. Additionally, AMD has introduced competitive AI technologies, including powerful accelerators poised to capture a share in a market worth several hundred billion dollars. During the quarter, the company reported fiscal first-quarter operating results that met analyst estimates, with strengths in data center GPUs and server CPUs offsetting weaknesses in their gaming and embedded businesses. Moreover, management raised their fiscal second-quarter revenue guidance, albeit slightly below consensus estimates, where they expected double digit growth in data center revenues, while projecting a decline in their gaming segment, driven by weaknesses in both desktop GPUs and Semi-Custom Systems-on-a-Chip (SoC). While weaker-than-expected near-term results weighed on shares during the quarter, we believe the company is positioning itself to potentially benefit from long-term growth in AI infrastructure spending. Specifically, the company continues to gain server CPU market share, which could potentially accelerate as traditional compute deployments begin to recover.”
