3. Advanced Micro Devices Inc. (NASDAQ:AMD)
Number of Hedge Fund Investors: 108
Jim Cramer shares that Lisa Su, CEO of Advanced Micro Devices Inc. (NASDAQ:AMD), mentioned on Mad Money that there is currently high demand for all of the company’s chips, particularly those designed for AI. Su expressed confidence in the future, stating that she anticipates years of upgrades and an increasing need for more powerful chips.
“Lisa Su, CEO of Club name Advanced Micro Devices, told me Wednesday on “Mad Money” that there is so much demand right now for all of her company’s chips, especially the AI ones. Su said she sees years and years of upgrades and more and more powerful chips needed.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) has a favorable outlook, supported by its strong foothold in fast-growing areas such as data centers and artificial intelligence. As demand for high-performance computing rises, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s EPYC processors and Radeon graphics cards are seeing increased sales, surpassing competitors like Intel and NVIDIA (NASDAQ:NVDA). The successful introduction of the Ryzen 7000 series further solidifies Advanced Micro Devices, Inc. (NASDAQ:AMD)’s market presence.
Collaborations with major cloud providers like Microsoft (NASDAQ:MSFT) and Alphabet Inc. (NASDAQ:GOOG) enhance its integration into enterprise solutions. Moreover, Advanced Micro Devices, Inc. (NASDAQ:AMD) reported a 30% increase in year-over-year revenue, reaching $5.3 billion in Q2 2024, highlighting Advanced Micro Devices, Inc. (NASDAQ:AMD) financial strength.
Baron Technology Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2024 investor letter:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global fabless semiconductor company focusing on high performance computing technology, software, and products including CPUs,9 GPUs, FPGAs,10 and others. Shares of AMD remain volatile, and after a strong run earlier in the year, the stock fell during the quarter as investors continue to wrestle with AMD’s competitive positioning in the AI compute market relative to NVIDIA, who continues to strengthen its full-system solution offerings at a rapid pace.
AMD also updated its MI300 GPU chip revenue expectations for the full year to “greater than $4 billion” vs. prior $3.5 billion, which disappointed the market a bit relative to high expectations. Over the long-term, we believe AMD, with its unique chiplet-based architecture and open-source software ecosystem, will play a meaningful role in the rapidly growing AI compute market, where customers don’t want to be locked into a single vendor and AMD offers a compelling total-cost-of-ownership proposition, especially in inferencing workloads.
Simultaneously, we believe AMD will continue to take share from Intel within traditional data center CPUs, which, while now a slower growth market, is likely to see a near-term refresh as data centers look for ways to improve energy efficiency and optimize existing footprints.”
