8 Best US Stocks For Foreign Investors Right Now

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

Average Upside Potential: 21.30%

Number of Hedge Fund Holders: 108

Advanced Micro Devices Inc. (NASDAQ:AMD) specializes in manufacturing semiconductor devices used in computer processing. It also produces flash memories, graphics processors, motherboard chipsets, and various components used in consumer electronics goods. Its Ryzen processors are known for their performance and efficiency, while the Radeon GPUs are popular for their gaming capabilities and professional applications.

The company’s Instinct MI300X AI accelerators offer a competitive price-to-performance ratio. Launched in 2023, the MI300 Series competes directly with Nvidia’s H100. Its Q2 2024 revenue grew 8.88%, driven by higher Instinct, Ryzen, and EPYC sales. Data center revenue grew 49% year-over-year, and Ryzen CPU sales increased 49%. Gaming revenue declined 59%, but Radeon 6000 GPUs saw increased sales. Net income grew 881% year-over-year.

Advanced Micro Devices Inc. (NASDAQ:AMD) launched an AI-backed smart parking solution earlier in July, improving vehicle license plate recognition, parking spot vacancy detection, and accident detection. In October, it introduced new processors for commercial PCs and high-performance computing solutions to meet the demands of the AI computing era.

On October 16, the company decided to team up with Intel to address the growing competition from ARM in the semiconductor industry. The collaboration aims to improve software compatibility across their x86-based chips, which have been facing challenges from ARM’s energy-efficient architecture and broader licensing model.

Its data center solutions, including EPYC CPUs, Instinct GPUs, and Pensando DPUs, offer advanced performance, energy efficiency, and scalability for AI, cloud, and technical computing. The leadership in AI-driven data center solutions is evident in its partnerships with major tech giants. With products like the 5th Gen EPYC processors, The company is well-positioned to capitalize on the growing demand for high-performance computing and AI technologies.

Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2024 investor letter:

“Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) lagged the market after the company reported earnings results that, while generally strong, left the market wanting more. The company reported AI revenue of ~$600 million and increased its forward-looking outlook for AI revenue growth, but shares took a breather, as results missed elevated expectations after the stock’s strong performance. Despite the stock’s underperformance during the quarter, the company’s AI story remains very much intact. The growth outlook for the company is supported by better cloud demand, enterprise recovery and continued share gains ahead of the company’s new AI product launch.”