5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
5-Year Revenue CAGR: 31.70%
TTM Net Income: $1.354 billion
Number of Hedge Fund Holders: 108
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company offering central processing units (CPU), graphics processing units (GPU), accelerated processing units (APU), data processing units (DPU), field-programmable gate arrays (FPGA), and System-on-chip (SoC) for data centers, personal computers, gaming, and embedded systems. It makes it to the 5th spot on our list of most profitable growth stocks.
The company’s data center segment provides server-class CPUs, GPUs, AI accelerators, DPUs, FPGAs, SmartNICs, and Adaptive SoCs designed to advance performance, energy efficiency, and scalability for various workloads. Products include AMD EPYC server processors, AMD Instinct GPUs for AI and supercomputing, Alveo accelerator cards, and Pensando DPUs for optimized data center performance.
These technologies target the growing demands of modern data centers, offering solutions for AI processing, cloud services, and technical computing while improving power and space efficiency.
At Advancing AI 2024, the company introduced a range of advanced AI solutions, including 5th Gen EPYC processors, AMD Instinct MI325X accelerators, and Ryzen AI PRO processors for enterprise AI. The company highlighted its leadership in AI-driven data center solutions with EPYC CPUs, Instinct GPUs, and Pensando DPUs, which power major AI workloads for companies like Google, Meta, and Microsoft.
Its open-source ROCm software also supports over one million AI models. New products like the Ryzen AI PRO 300 Series offer high AI performance and enterprise security. Partners like Dell and Oracle also showed how they use the company’s technologies to drive innovation in AI infrastructure.
Its 5th Gen EPYC processors offer top-tier performance for data center workloads, including AI, cloud, and enterprise applications. Built on the “Zen 5” architecture, these CPUs deliver up to 37% better instructions per clock for AI and HPC tasks. The flagship 192-core EPYC 9965 processor outperforms competitors in AI workloads, with significant gains in performance for business applications, HPC, and virtualized infrastructure.
The EPYC 9575F, optimized for AI, can drive faster results in large-scale AI clusters. These processors also offer energy efficiency, enabling up to 71% less power usage and 87% fewer servers for the same workloads, with wide support from leading OEMs.
On October 10, Roth MKM analyst Suji Desilva maintained a Buy rating and $200 price target on Advanced Micro Devices (NASDAQ:AMD). The analyst believes in a strong opportunity in the growing AI infrastructure sector for the stock. He highlighted the company’s hardware, software platform, and Ethernet networking advancements, especially its EPYC processors, which improve high-scale AI inferencing. Desilva also praised Advanced Micro Devices (NASDAQ:AMD) Instinct GPU roadmap and called it a key part of the company’s integrated AI infrastructure offering.
