7 Most Profitable Gaming Stocks To Invest In

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

TTM Net Income: $1.35 Billion

5-Year Net Income CAGR: 47.95%

Number of Hedge Fund Holders: 108

Advanced Micro Devices Inc. (NASDAQ:AMD) is an American multinational semiconductor and technology company that ranks among the top 3 on our list of the most profitable gaming stocks to invest in. The company specializes in designing and developing 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 various markets like data centers, personal computers, gaming, and embedded systems.

The company’s gaming solutions are used across PCs, handhelds, consoles, and cloud gaming. Advanced Micro Devices Inc. (NASDAQ:AMD) has gained popularity for its Ryzen processors and Radeon graphics cards, which are known for delivering strong performance.

AMD is actively enhancing its gaming and computing offerings, making it a compelling stock for investors. The company recently launched its new Ryzen 9000 Series processors based on the innovative “Zen 5” architecture. This series is designed to deliver high performance in gaming, productivity, and content creation. Additionally, Advanced Micro Devices Inc. (NASDAQ:AMD) introduced new mobile and desktop processors with advanced features for enterprises, showing its commitment to catering to a wide range of customers.

Despite a decline in gaming revenue in Q2 2024 due to softer demand for semi-custom chips in consoles, AMD’s gaming graphics segment has seen growth from improved sales of its Radeon 6000 and 7000 series GPUs.

With a robust product lineup and ongoing innovations in AI and gaming technologies, Advanced Micro Devices Inc. (NASDAQ:AMD) is well-positioned for future revenue gains.

AMD ranks among the most profitable stocks to invest in. Over the past five years, the company has seen its net income grow at a compound annual growth rate (CAGR) of 47.95%, with revenue increasing at a CAGR of 31.70%.

As of the second quarter of 2024, Advanced Micro Devices Inc. (NASDAQ:AMD) was held by 108 hedge funds, according to Insider Monkey’s database.