4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Shareholders In Q1 2024: 124
Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and sells GPUs and accelerators used for AI. June 2024 has been an important month for the firm as it joined NVIDIA at Computex to announce a slew of new products for AI processing. At the event, Advanced Micro Devices, Inc. (NASDAQ:AMD) announced its Ryzen AI 300 series chips, which it believes offer the “fastest APU performance” in the world. The average of 41 one year analyst share price targets for Advanced Micro Devices, Inc. (NASDAQ:AMD) is $187 and the shares are rated Strong Buy on average.
For their first quarter of 2024 investment stakes, 124 hedge funds covered by Insider Monkey were Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stakeholders. Ken Fisher’s Fisher Asset Management held the most valuable stake which was worth $5.2 billion.
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s story on the stock market has been one of constant growth over the past couple of years. The future might be bright too, as the market has set a forward P/E ratio of 49 for the company. Compared to the market’s ratio of 21, the stock maintain its strong growth in the future. Meridian Funds commented on Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2023 investor letter and shared:
Advanced Micro Devices, Inc. is a global semiconductor chip maker specializing in central processing units (CPUs), which are considered the core component of most computing devices, and graphics processing units (GPUs), which accelerate operations running on CPUs. We invested in 2018 when it was a mid-cap value stock plagued by many years of underperformance due to lagging technology and lost market hishare versus competitors Intel and Nvidia. Our research identified that changes and investments made by current management under CEO Lisa Su had, over several years, finally resulted in compelling technology that positioned AMD as a stronger competitor to Nvidia and that its latest products were superior to Intel’s. We invested on the the belief that AMD’s valuation at that that time did not reflect the potential for its technology leadership to generate significant market share gains and improved profits. This thesis has been playing out for several years. During the quarter, AMD unveiled more details about its upcoming GPU products for the AI market. The stock reacted positively to expectations that AMD’s GPU servers will be a viable alternative to Nvidia. Although we pared back our exposure to AMD into strength as part of our risk-management practice, we maintained a position in the stock. We believe AMD will continue to gain share in large and growing markets and is reasonably valued relative to the potential for significantly higher earnings.
