3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 108
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company. It operates through four segments, Data Center, Client, Gaming, and Embedded. The company offers a diverse range of products that include x86 microprocessors, graphics processing units (GPUs), chipsets, and various data center solutions.
Its well-known product lines include the Ryzen and Ryzen Threadripper processors, AMD Radeon graphics cards, and EPYC server microprocessors. The company also produces low-power solutions and field-programmable gate arrays (FPGAs), along with adaptive system-on-chip (SoC) products, marketed under names such as Virtex, Kintex, and Versal.
Ahead of the company’s analyst day, Cramer said:
“Not to be outdone, Lisa Su, the CEO of AMD, will hold an analyst day and it’s entitled Advancing AI 2024. It starts at noon. Today, when the stock was plummeting, I told investing club members at my 10:20 morning meeting that Su’s presentation could show this charitable trust holding in a whole new light, even as they’ve been raising their AI sales forecast quarter after quarter after quarter. I think it’s a buy ahead of the meeting, although the stock did run eight points after we talked about it at the morning meeting.”
On October 10, Advanced Micro Devices (NASDAQ:AMD) is set to host its “Advancing AI 2024” event, which is expected to show the next generation of AMD Instinct accelerators and the fifth-generation AMD EPYC server processors.
It is a highly anticipated event within the industry, especially as Chief Executive Officer Lisa Su has projected over $4.5 billion in sales from its artificial intelligence chips for the current year.
On October 5, BofA made a note of the fact that last year’s AI event on December 6 led to stock returns of 19% after one month and 80% after three months. The firm also highlighted that the stock reached its peak in early March, just before Nvidia’s GTC tradeshow.
The firm suggested that updates to the AI roadmap and server CPU developments, along with positive feedback from cloud customers, may revitalize Advanced Micro Devices (NASDAQ:AMD) stock, which has only seen a 9% increase year-to-date.
Despite this, the competitive landscape is becoming increasingly crowded, and expectations among investors are high, as they expect the company to raise calendar year 2024 AI sales by another 10% to over $5 billion. The analyst maintained a Buy rating on the company stock with a price target of $180.
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.”
