5 Best Growth Stocks To Invest In For the Next 5 Years

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

P/E Ratio: 292.68

Quarterly Revenue Growth: 10.16%

Number of Hedge Fund Holders: 120

Based in Santa Clara, California, Advanced Micro Devices, Inc. (NASDAQ:AMD) is a renowned global semiconductor company specializing in the development of computer processors and associated technologies, catering to both business and consumer markets.

On March 11, Cantor Fitzgerald analysts reaffirmed their Overweight rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) and set a price target of $190.

Insider Monkey’s analysis of hedge fund activity in the fourth quarter of 2023 revealed that out of the 933 surveyed hedge funds, 120 had holdings in Advanced Micro Devices, Inc. (NASDAQ:AMD). The largest hedge fund shareholder of the company is Ken Fisher’s Fisher Asset Management, boasting ownership of 28 million shares valued at $4.1 billion.

Meridian Funds stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth quarter 2023 investor letter:

“Advanced Micro Devices, Inc. (NASDAQ:AMD) 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 hi share 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.”