5 Stocks That Will Benefit from CHIPS Act

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

Number of Hedge Fund Holders: 83

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a California-based semiconductor company that manufactures microprocessors, chipsets, discrete and integrated graphics processing units, server and embedded processors, and semi-custom System-on-Chip (SoC) products. For fabless businesses like Advanced Micro Devices, Inc. (NASDAQ:AMD), the CHIPS Act will potentially create more sophisticated manufacturing options. 

On August 3, Raymond James analyst Chris Caso reiterated a Strong Buy rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) and lowered the price target on the shares to $130 from $160. Advanced Micro Devices, Inc. (NASDAQ:AMD) reported another “solid” quarter, with revenue exceeding the consensus modestly, primarily due to really robust Datacenter and Embedded growth year over year, the analyst told investors. While the third quarter guidance was “disappointing”, the company’s full-year outlook implies a more robust growth rate in December, the analyst added. He thinks regardless of a weakening macro backdrop, a strong new product pipeline and advanced customer engagements will drive long-term gains for Advanced Micro Devices, Inc. (NASDAQ:AMD).

According to Insider Monkey’s data, 83 hedge funds were bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of Q1 2022, up from 69 funds in the last quarter. Jim Simons’ Renaissance Technologies is a prominent stakeholder of the company, with 7.10 million shares worth over $777 million.

Here is what Carillon Tower Advisers has to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2021 investor letter:

“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”

You can also take a look at 10 Stocks That the Russia-Ukraine War Will Affect in the Future and 10 Best Stocks For Inflation According to Redditors. 

Follow Insider Monkey on Twitter